Example

Mr. X a service provider providing service of transport of passenger and also providing food and beverages during journey. Determine the credit eligible to Mr. X in respect of followings
 

S.No.	Particulars	GST  Paid on Input/CG/ IS
1	Motor car	350000
2	Purchase of food or beverages	113000
3	Other input services	64000

Answer

Admissible ITC is as under;

Notes:-

1. Section 17(5) specifies that input tax credit shall not be available on motor vehicles and other conveyances except when they are used''

(i) for making the following taxable supplies, namely:'
    (A) further supply of such vehicles or conveyances ; or
    (B) transportation of passengers; or
    (C) imparting training on driving, flying, navigating such vehicles or conveyances

One of the exceptions is when used for transportation of passenger. Thus, ITC is eligible.

2. Section 17(5) specifies that input tax credit shall not be available in respect of supply of food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply. In given case supply of food and beverages is an element of composite supply thus credit is allowed.

3. Other input services as used for the purpose of business in accordance of section 16.