Blocked Input Tax Credit: taxpayers must reverse ineligible credits on passenger vehicles and construction services to comply. The circular explains that Section 17(5) blocks ITC for specified supplies including passenger motor vehicles (except where used for further supply, passenger transport, or training), works contract and construction services for immovable property (other than plant and machinery) unless used for further supply of works contract services, and goods or services used in construction on one's own account. Blocked credits must be reported in GSTR 3B (Table 4(D)(1)) and other ineligible credits in Table 4(D)(2). Taxpayers must reverse wrongly claimed blocked credits suo motu via DRC 03.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Blocked Input Tax Credit: taxpayers must reverse ineligible credits on passenger vehicles and construction services to comply.
The circular explains that Section 17(5) blocks ITC for specified supplies including passenger motor vehicles (except where used for further supply, passenger transport, or training), works contract and construction services for immovable property (other than plant and machinery) unless used for further supply of works contract services, and goods or services used in construction on one's own account. Blocked credits must be reported in GSTR 3B (Table 4(D)(1)) and other ineligible credits in Table 4(D)(2). Taxpayers must reverse wrongly claimed blocked credits suo motu via DRC 03.
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