How to Treat Blocked Credit in Motor Vehicles?
How to Treat Blocked Credit in Motor Vehicles? there are
some plant and machinery, which also have some construction
and all.
If you're getting plant and machinery made, you can take
ITC of plant and machinery.
You can take ITC of plant and machinery.
Sometimes there are some plant and machinery, which are
connected to the land.
In that case, you can take ITC of that, sir.
Okay? We will take ITC of that.
Is there any other case?
Is there any other case, sir?
Sir, repairs and maintenance.
As I said before, you're getting repairs and maintenance
done.
If you haven't capitalized in books, then you can take ITC
This is the point, let me see what he is saying
Look at it once
Input service relating to construction activity like office
building, factory building These are blocked
However, ITC is available for repairs, maintenance,
renovation
And it will only be of immovable property
When can you get ITC?
ITC on work contract service for construction of the
immovable property
It is blocked Except when?
It is not blocked
When can I get ITC?
Look at it It is input service for further supply of work
contract service
Subcontracting I am a contractor
I am not For example, I am a contractor
Someone gave me a work contract to construct the immovable
property
This is the floor of the office Give me one more floor
Give me one more floor
Construction of immovable property
I said okay, I will do it At the same time, another person
came to me
Sir, I have heard that you do a very good job
So, I also have one floor
Give me one more floor
Same dimensions
One person is giving me 10 lakhs
Another person is giving me 1 crore For whom will I work?
For the one who is giving me 1 crore
It is absolutely right
Now, what will happen?
Try to understand I will not give up the work worth 10 lakhs
I am a man
I will not give up the work worth 10 lakhs
What will I do?
I will hire a small contractor
I will give you 6 lakhs
In 6 lakhs, I will complete the construction of the
immovable property
In this case, the contractor is giving me services
He is working on my request
Who is giving him the service?
I have hired him
He will pay me 6 lakhs
GST will charge me
Will I get his ITC in that case?
It is the work contract service
It is the construction of immovable property
Will I get his ITC in that case?
The answer is yes
Why will I get it?
He is shouting
It is input service
If this is the case
Then I will get an ITC
If this is the case
Then I will get an ITC
If this is the case
Then I will get an ITC
If this is the case
Next point, self-construction of the immovable property.
that I bought something for a business purpose I will get
all that It is not specifically for a personal purpose
Look, he has even written it See Mr. X owns a grocery store
He bought rice, wheat, biscuits for being sold in the store
Out of the inventory he gives 10 kg each of rice, wheat to
his wife
So being used for personal consumption, ITC is blocked This
is the point
See if there is a free gift
If there is a free gift and the goods are stolen or lost
Now the output you have made is stolen or lost
You cannot get ITC on that
When you have not collected any tax on the output
You are not collecting any tax on the output So how can you
get ITC on that?
The goods are stolen or lost
This is very easy
You will not do sales
Suppose you bought something for 10 crores
You will show that you did not do any sales
You stole everything
Give me ITC
If you don't have ITC, at least give me a refund
Sir, this will lead to a lot of refund cases
There will be a lot of problems
Goods lost, goods stolen
In that case, you don't get ITC
See
ITC is available
See what he is saying
ITC is available only for payment of tax on output supply
If no tax is payable on the output ITC on inputs
relating to such output is not eligible Hence, ITC on
gifts, free samples is blocked as no tax is payable on the
output supply
This is the point
You are not taking any output tax on gifts
You are not collecting tax from customers You are
distributing free samples
You are giving gifts to someone You are not collecting tax
In that case, you cannot file an ITC claim
This was the point related to ITC This was the point
related to Blocked Credit Section 17.5
This is the point
Is the point clear?
Let's see
These were our points
Section 17.5 Blocked Credit
I would like to thank all of you
Please support me
Please support me, whoever is watching me
You have done a great job
We have completed Section 16
We have completed Section 17
Blocked Credit is a great topic
We have completed it in a snap
Till the time ITC was not started we were wondering what it
is
Now see, there is nothing
That is why I am saying
It is difficult to see things from a distance
Once you take the first step
Then you don't feel anything
Then it is okay, you take the first step
Whether you make it run for 100 or 500
It has to run
If you don't take the first step
You will get stuck
We will try to finish it in the next class
Till then, thank you very much
Keep revising it