This is an invoice-level screen; proportionate reversals and common-credit rules need return-level computation.
ITC indicated
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Immediate reversal/payment warning
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How This Is Calculated
Claiming Input Tax Credit under Section 16 requires satisfying all conditions together: the goods/services are used for business, a valid tax invoice is held, the goods/services are actually received, the credit appears in GSTR-2B, the recipient's return is filed, the supplier has actually paid the tax, and the claim is within the statutory time limit. Even when these are met, Section 17(5) specifically blocks credit on certain categories (like most motor vehicles, food and beverages, and club memberships) unless a listed exception applies.
Frequently Asked Questions
What are the basic conditions to claim ITC under Section 16?
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All of these must be satisfied together: possession of a valid tax invoice, actual receipt of goods/services, the supplier having paid the tax to the government, filing of the recipient's own return, the credit reflecting in GSTR-2B, and claiming within the statutory time limit — missing any one condition blocks the credit.
What are examples of Section 17(5) blocked credits?
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Common blocked categories include motor vehicles for personal transport (with specific exceptions for further supply, transport services, or driving training), food and beverages, outdoor catering, health and life insurance (unless mandatory or for further supply), club memberships, and goods/services used for personal consumption.
Why does GSTR-2B matter for claiming ITC?
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GSTR-2B is the auto-generated statement showing ITC that has actually been reported by your suppliers. A recipient generally cannot claim ITC that doesn't reflect in GSTR-2B, regardless of holding a valid invoice — this is a key check against invoices from non-compliant suppliers.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
Scope: Checks Input Tax Credit (ITC) eligibility for a specific purchase/expense, applying the blocked-credit list under Section 17(5) of the CGST Act and the conditions under Section 16.
Calculation logic
Check the general conditions for ITC eligibility under Section 16: possession of a valid tax invoice, receipt of goods/services, tax actually paid by the supplier to the government (reflected in the recipient's GSTR-2B), and the recipient's own return filed.
Check the expense category entered against the Section 17(5) blocked-credit list (e.g., motor vehicles for personal use with limited exceptions, food and beverages, club memberships, works contract services for immovable property construction with limited exceptions, goods/services used for personal consumption) — if it matches a blocked category, ITC is disallowed regardless of the general conditions being met.
Where the expense is used for both taxable and exempt/personal purposes, apply the proportionate ITC reversal principle under Rule 42/43, flagging that only the taxable-business-use proportion is eligible.
Inputs and assumptions
ITC eligibility rules applied follow the current CGST Act Section 17(5) blocked-credit list and Section 16 conditions, including the time limit for claiming ITC (currently the earlier of the due date of the November return of the following financial year, or the date of filing the annual return).
GSTR-2B reflection as a precondition for ITC claim (introduced via Rule 36(4)/Section 16(2)(aa)) is applied — the calculator assumes the supplier has correctly reported the invoice.
Exclusions and edge cases
Does not itself reconcile against the taxpayer's actual GSTR-2B — use the GST Return Reconciler tool for that; this checker assesses category-level eligibility based on the expense type described.
Complex mixed-use scenarios (partial personal use of an otherwise eligible asset) require the Rule 42/43 proportionate reversal computation, which this checker flags but does not fully compute — see the Rule 42 Common ITC Reversal calculator for that.