January 05, 2026
Blocked Credit under GST
Blocked credit = ITC disallowed under Section 17(5) of CGST Act. Motor vehicles (except for resale/transport), vessels, aircraft, food, beverages, personal services. Raises effective tax cost, reducing available working capital for businesses Please refer below link for further details: https://tweetksaca.blogspot.com/2026/01/blocked-credit-under-gst.html
Blocked credit under GST refers to input tax credit (ITC) that businesses cannot claim under Section 17(5) of the CGST Act. It covers specific goods and services like motor vehicles, vessels, aircraft, food & beverages, club memberships, and personal consumption. These restrictions increase GST cash outflow and impact working capital management.