Existing Provisions |
Amended Provisions |
Changes & Impact |
(a) motor vehicles and other conveyances except when they are used–– |
“(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:— |
a) Now, only motor vehicles having seating capacity <= 13 comes into the preview of blocked credits. b) Following will not fall in ambit of blocked credits. (i) Motor vehicles having seating capacity > 13 (ii) Motor vehicles for transportation of goods |
(i) for making the following taxable supplies, namely:— |
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(A) further supply of such vehicles or conveyances ; or |
(A) further supply of such motor vehicles; or |
Now applicable for motor vehicles having seating capacity <= 13 |
(B) transportation of passengers; or |
(B) transportation of passengers; or |
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(C) imparting training on driving, flying, navigating such vehicles or conveyances; |
(C) imparting training on driving such motor vehicles |
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(ii) for transportation of goods; |
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Indirectly excluded from these restrictions. |
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(aa) vessels and aircraft except when they are used– |
Now Other conveyances are covered under these clauses |
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(i) for making the following taxable supplies, namely:— |
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(A) further supply of such vessels or aircraft; or (B) transportation of passengers; or (C) imparting training on navigating such vessels; or (D) imparting training on flying such aircraft; |
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(ii) for transportation of goods; |
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(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): |
New insertions so as to specifically disallow ITC on motor vehicles, vessels and aircrafts covered in clause (a) or clause (aa) |
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Provided that the input tax credit in respect of such services shall be available— |
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(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; |
Allowing credits of services mentioned in clause (ab) upon fulfilment of certain conditions |
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(ii) where received by a taxable person engaged— (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him; |
Allowing credits of services mentioned in clause (ab) to:- i) Manufactures of such Motor Vehicles, vessels or aircrafts ii) General Insurance Service Providers |
(b) the following supply of goods or services or both— |
(b) the following supply of goods or services or both— |
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(i) 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; |
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both 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; |
Specifically disallow ITC on leasing, renting or hiring of motor vehicles, vessels and aircrafts covered in clause (a) or clause (aa) |
(ii) membership of a club, health and fitness centre; |
(ii) membership of a club, health and fitness centre; and |
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(iii) rent-a-cab, life insurance and health insurance except where–– (A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or (B) such 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 part of a taxable composite or mixed supply; and |
Merged in sub clauses (i) |
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(iv) travel benefits extended to employees on vacation such as leave or home travel concession; |
(iii) travel benefits extended to employees on vacation such as leave or home travel concession: Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.”. |
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