Input tax credit restrictions narrowed: credits blocked for certain vehicles, vessels and services with limited usage-based exceptions. Amendments clarify that the 'value of exempt supply' excludes Schedule III activities except paragraph five, and revise blocked-credit rules to restrict input tax credit for certain passenger motor vehicles, vessels and aircraft and related insurance and maintenance, while allowing credit when such inputs are used for further supply, passenger transport, training, goods transport, by manufacturers, or by insurers; additional specified exclusions cover certain food and personal services, leasing or hiring of those conveyances, life and health insurance, club memberships and employee travel benefits, with credits permitted where used to make outward taxable supplies or as elements of taxable composite supplies or when employer provision is legally obligatory.
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Provisions expressly mentioned in the judgment/order text.
Input tax credit restrictions narrowed: credits blocked for certain vehicles, vessels and services with limited usage-based exceptions.
Amendments clarify that the "value of exempt supply" excludes Schedule III activities except paragraph five, and revise blocked-credit rules to restrict input tax credit for certain passenger motor vehicles, vessels and aircraft and related insurance and maintenance, while allowing credit when such inputs are used for further supply, passenger transport, training, goods transport, by manufacturers, or by insurers; additional specified exclusions cover certain food and personal services, leasing or hiring of those conveyances, life and health insurance, club memberships and employee travel benefits, with credits permitted where used to make outward taxable supplies or as elements of taxable composite supplies or when employer provision is legally obligatory.
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