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Section 16, 17(5) & Rules 37, 42 CGST Act

GST Input Tax Credit (ITC) & Blocked Credit Checker

Audit your GSTR-2B purchase invoices for Section 17(5) blocked credits, Rule 42 exempt reversals, and Rule 37 180-day vendor non-payment rules. Prevent GST department audit notices and interest penalties.

GST Audit & Filing Desk
Net Eligible ITC for GSTR-3B Table 4(A)
₹5,00,000100% claimable

Gross in GSTR-2B: ₹5,00,000 | Total Ineligible Reversals: ₹0

Sec 17(5) Blocked Credit
₹0
Table 4(B)(1) mandatory reversal
Rule 42 Exempt Reversal
₹0
Pro-rata turnover reversal

Section 17(5) Ineligible Invoices Identification

Select any expenditure incurred by your company where the GST law explicitly prohibits claiming Input Tax Credit:

Passenger Motor Vehicles (≤ 13 Seats)Section 17(5)(a)

Purchase, leasing, or insurance of corporate cars, SUVs

Exception: Eligible ONLY if business is in vehicle reselling, passenger transportation, or commercial driving school.

Food, Beverages & Outdoor CateringSection 17(5)(b)(i)

Office cafeteria, executive snacks, client dinners, event catering

Exception: Eligible ONLY where employer is statutorily obligated to provide canteen under Factories Act 1948.

Club, Health & Fitness MembershipsSection 17(5)(b)(ii)

Gym memberships, recreational club entry for directors/employees

Exception: No exception. 100% blocked under statutory provisions.

Works Contract for Building ConstructionSection 17(5)(c)

Civil contractor bills for constructing office or warehouse building

Exception: Eligible if used for Plant & Machinery (foundations/turbines) or sub-contracting works contract services.

Construction Goods/Services on Own AccountSection 17(5)(d)

Cement, steel, tiles, paint purchased for building company office

Exception: Blocked if capitalized into immovable property asset value (Safari Retreats Supreme Court ruling).

Corporate Social Responsibility (CSR) ExpensesSection 17(5)(fa)

Goods or services procured for Section 135 CSR activities

Exception: Strictly blocked under Finance Act 2023 amendment with effect from 1st Oct 2023.

Lost, Stolen, Written Off Goods & Free SamplesSection 17(5)(h)

Inventory damaged in transit, promotional free gifts, sample giveaways

Exception: Full ITC reversal mandatory on goods gifted, destroyed, or written off in books of accounts.

GSTR-2B Purchase Credit Data

₹
Rule 42 Common Credit Reversal
Does company make exempt or non-GST sales?
₹

Second proviso to Section 16(2): If payment to vendor is pending > 180 days from invoice date, ITC must be reversed along with 18% penal interest under Section 50.

4 Mandatory Conditions to Claim Any ITC (Section 16(2)):
  • Possession of tax invoice issued by supplier.
  • Actual receipt of goods or services.
  • Tax charged has actually been paid to the Government by the supplier.
  • Supplier has furnished valid return under Section 39 (GSTR-3B).