Page 103 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : DEENDAYAL PORT TRUST 341
(3) Land levelling and other related works;
(4) Roads;
(5) Water, electricity, & Drainage Infrastructure; and
(6) Other related works for developing SIPC.
5. It is observed that Chapter V of CGST Act stipulates in respect of In-
put Tax Credit. Section 16(1) of the CGST Act provides that every registered per-
son shall, subject to such conditions and restrictions as may be prescribed, be entitled
to take credit of input tax charged on any supply of goods or services or both to
him which are used or intended to be used in the course or furtherance of his
business. For ease of reference the same is reproduced as follows :-
[CHAPTER V
INPUT TAX CREDIT
16. Eligibility and conditions for taking input tax credit. - (1) Every
registered person shall, subject to such conditions and restrictions as may
be prescribed and in the manner specified in section 49, be entitled to take
credit of input tax charged on any supply of goods or services or both to
him which are used or intended to be used in the course or furtherance of
his business and the said amount shall be credited to the electronic credit
ledger of such person.]
6. It is further observed that sub-section (5) of Section 17 of the CGST
Act denies input tax credit in respect of goods and services specified there-under. For
ease of reference the same is reproduced as follows :-
[(5) Notwithstanding anything contained in sub-section (1) of section 16
and sub-section (1) of section 18, input tax credit shall not be available in re-
spect of the following, namely :-
(a) 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;
(ii) for transportation of goods;
(b) the following supply of goods or services or both -
(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 cat-
egory 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;
(ii) membership of a club, health and fitness centre;
(iii) rent-a-cab, life insurance and health insurance except where -
(A) the Government notifies the services which are obligato-
ry 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 par-
ticular category is used by a registered person for mak-
GST LAW TIMES  16th July 2020  103