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๐Ÿ’ณ Section 16 ยท 17(5) ยท Rule 36(4) ยท Rule 42/43 ยท GSTR-2B ยท IMS 2025

GST Input Tax Credit
(ITC) Tracker India
Eligibility ยท Blocked Credits ยท 180-Day Rule

Track and compute your GST ITC โ€” eligible credits, Section 17(5) blocked credits, 180-day vendor payment reversal alerts, RCM ITC, capital goods, and Rule 42/43 apportionment. Updated for IMS 2025 and Rule 37A supplier non-filing reversal.

ITC Claim Deadline
30 Nov
Payment Rule
180 Days
Reversal Interest
18% p.a.
ITC Basis
GSTR-2B Only
Provisional ITC
Not Allowed
ITC Computation Tool
Section 17(5) Blocked List
180-Day Payment Tracker
Rule 42/43 Apportionment
RCM ITC Guidance
IMS + GSTR-2B 2025 Rules
ITC Calculator โ€” Section 16 + Section 17(5)

Monthly ITC Eligibility Calculator โ€” Net ITC for GSTR-3B Table 4

Enter your purchases for the month by category. The calculator applies Section 16 eligibility, flags Section 17(5) blocked credits, computes Rule 42 exempt-supply reversal, and shows net ITC to claim in GSTR-3B Table 4.

๐Ÿ“Š Monthly ITC Position Calculator

Category-wise GST inputs โ†’ Section 17(5) blocked credits auto-flagged โ†’ Rule 42 reversal computed โ†’ Net GSTR-3B Table 4 position

๐Ÿ“ฅ Eligible Inward Supplies โ€” GST Paid
โ‚น
GST on all inputs for business production/trading โ€” eligible under Sec 16
โ‚น
Accounting, marketing, freight, software subscriptions, professional fees โ€” eligible
โ‚น
Full ITC in year of purchase. Report in GSTR-3B Table 4(A)(4)
โ‚น
GTA, advocate fees, director services, import of services โ€” claimable after cash payment in same period
๐Ÿšซ Blocked Credits โ€” Section 17(5) โ€” Cannot Claim
โ‚น
BLOCKED โ€” General use. Exception: vehicle dealers, taxi operators, driving schools
โ‚น
BLOCKED โ€” Staff meals, client dinners, canteen. Exception: statutory factory canteen
โ‚น
BLOCKED โ€” Group health/life insurance premiums. Exception: statutory obligation (Employees' Compensation Act)
โ‚น
BLOCKED โ€” Works contract / civil works on immovable property. Movable fittings (AC, electrical): ELIGIBLE separately
โ‚น
BLOCKED โ€” Golf, gym, spa, club memberships. No exception
โ‚น
BLOCKED โ€” Employee transport cabs. Exception: IT companies with statutory odd-hour transport obligation
๐Ÿ“ Rule 42 โ€” Partial Reversal for Mixed-Use (Taxable + Exempt Supplies)
โ‚น
Standard + zero-rated taxable supplies
โ‚น
Exempt supplies โ€” ITC on common inputs reversed proportionally
โ†ฉ๏ธ ITC Reversals This Month
โ‚น
ITC to reverse on invoices unpaid beyond 180 days โ€” GSTR-3B Table 4(B)(2). Reclaimable once paid.
โ‚น
Supplier non-filing reversal (Rule 37A), supplier-issued credit notes, fraud-related reversals
๐Ÿ“Š ITC Summary โ€” GSTR-3B Table 4
Total Available
โ€”
Blocked 17(5)
โ€”
Rule 42 Reversal
โ€”
Other Reversals
โ€”
Net ITC Claimable
โ€”
ITC CategoryGSTR-3B TableTypeAmount (โ‚น)Notes

๐Ÿ“Œ Need CA help with GSTR-2B reconciliation, blocked credit audit, 180-day tracking, or ITC demand notice? TAXAJ handles complete ITC compliance.

Book ITC CA Review โ†’

โš ๏ธ Indicative estimate. Rule 42/43 exact calculation requires annual figures. Verify GSTR-2B before filing. Section 17(5) applies regardless of business use or invoicing. RCM ITC claimable only after cash payment.

180-Day Rule โ€” Section 16(2)

โฑ๏ธ 180-Day Vendor Payment Tracker

Track invoices approaching the ITC reversal deadline. Enter invoice details โ€” get automatic status: Safe / Warning / Due / Overdue. ITC must be reversed if supplier unpaid beyond 180 days from invoice date.

โฑ๏ธ 180-Day ITC Reversal Monitor

Section 16(2) โ€” Reverse ITC + 18% interest if unpaid after 180 days. Reclaim in Table 4(D)(1) once paid.

Vendor / InvoiceInvoice DateITC AmountStatus

Today: 26 June 2026. Overdue ITC โ†’ Reverse in GSTR-3B Table 4(B)(2) + 18% p.a. interest from original claim date. Reclaim in Table 4(D)(1) after payment.

Section 17(5) Complete List

GST Blocked Credits โ€” Section 17(5) CGST Act

These are permanently blocked โ€” even with valid invoice, registered supplier, GSTR-2B reflection, and business use. Claiming blocked ITC = reversal with 18% interest + penalty.

SectionCategoryWhat is BlockedException (ITC Available)
17(5)(a)Motor VehiclesCars, SUVs, motorcycles with seating โ‰ค13 for general use. Company cars, executive vehicles, employee pick-up drops.Allowed: Vehicle dealers, taxi/cab business, driving school, transportation of goods (trucks/vans)
17(5)(b)Food & BeveragesFood, beverages, outdoor catering, beauty treatment, health services, cosmetic surgery, club memberships, LTA/LTC.Allowed: Restaurant business supplying same. Factory canteen if mandated by Factories Act.
17(5)(b)(ii)Life / Health InsuranceEmployee health insurance, group health cover, life insurance premiums, accident cover paid by employer.Allowed: Statutory requirement (Employees' Compensation Act). Insurance business itself.
17(5)(c)Works ContractWorks contract services for construction of immovable property on own account โ€” office renovation, factory civil work, building construction.Allowed: Plant & machinery services. Sub-contractor supplying to main contractor.
17(5)(d)Construction MaterialsGoods & services used for construction of immovable property on own account โ€” steel, cement, bricks, tiles for own building.Allowed: Plant & machinery. Movable assets (AC, electrical, computers). Civil structure supporting P&M.
17(5)(e)Goods Lost / Written OffGST on goods that are destroyed, lost, stolen, written off as bad debt, or given as gifts to employees / related parties.Allowed: Trade samples per business norm. Statutory gifts. No exception for employee gifts >โ‚น50,000/year.
17(5)(f)+(g)Tax on Fraud / PenaltyGST paid under Section 74 (fraud/suppression), Section 129 (detention), or Section 130 (confiscation). Penalty payments.No exception โ€” these are penalties, not input costs
๐Ÿ“‹

4 Conditions โ€” Section 16(2)

All 4 must be met simultaneously: (1) Valid tax invoice; (2) Goods/services received; (3) Tax paid by supplier โ€” verified via GSTR-2B; (4) GSTR-3B filed by recipient. Miss any one = ITC ineligible.

๐Ÿ“Š

GSTR-2B Only โ€” Rule 36(4)

Since January 1, 2022, provisional ITC is eliminated. ITC only available on invoices in GSTR-2B โ€” generated on 14th of each month. No supplier GSTR-1 = No GSTR-2B = No ITC, even with valid invoice.

๐Ÿ“…

Nov 30 Deadline โ€” Section 16(4)

ITC must be claimed by earlier of 30 November or GSTR-9 filing date. FY 2025-26 โ†’ 30 Nov 2026. Filing GSTR-9 early permanently closes the window. After this: credit permanently lost.

โฐ

180-Day Payment โ€” Section 16(2)

Reverse ITC if supplier unpaid after 180 days from invoice date. Reverse in GSTR-3B Table 4(B)(2) + 18% p.a. interest. Reclaim in Table 4(D)(1) once paid. Track proactively from 150 days.

๐Ÿ”„

Rule 37A โ€” Supplier Non-Filing

If supplier files GSTR-1 (invoice appears in GSTR-2B), you claim ITC, but supplier doesn't file GSTR-3B โ€” reverse ITC under Rule 37A. Track vendor GSTR-3B compliance monthly. Reclaimable once supplier files.

๐Ÿ“ฑ

IMS โ€” Invoice Management System

Accept / Reject / Pending each supplier invoice in IMS before it flows to GSTR-2B. Budget 2025: credit note from supplier requires ITC reversal by recipient before supplier can reduce output tax. Review IMS monthly.

โš ๏ธ ITC Claim Deadlines โ€” Section 16(4) โ€” Miss = Permanently Lost

FY 2024-25 ITC
30 November 2025
Invoices Apr 2024โ€“Mar 2025. Deadline has passed โ€” any unclaimed ITC is permanently lost.
FY 2025-26 ITC
30 November 2026
Invoices Apr 2025โ€“Mar 2026. Do NOT file GSTR-9 early โ€” closes window immediately.
FY 2026-27 ITC
30 November 2027
Invoices Apr 2026โ€“Mar 2027. Claim by earlier of 30 Nov 2027 or GSTR-9 filing date.
FAQ

GST Input Tax Credit โ€” Most Asked Questions

All four must be satisfied simultaneously under Section 16(2): (1) Valid tax invoice or debit note or bill of entry in your possession; (2) Goods/services actually received โ€” physically or constructively; (3) Tax paid by supplier, verified through GSTR-2B โ€” if supplier hasn't filed GSTR-1, ITC is unavailable; (4) GSTR-3B filed by the recipient. Additionally, the supplier must be paid within 180 days, and ITC must be claimed before November 30 of the following year (or GSTR-9 filing date, whichever is earlier). Missing any single condition blocks ITC entirely.
No. From January 1, 2022, under Rule 36(4), ITC can only be claimed on invoices appearing in GSTR-2B. Provisional ITC is completely eliminated. Even with a valid physical invoice from a registered supplier, if it's absent from GSTR-2B, you cannot claim ITC that month. GSTR-2B is generated on the 14th โ€” from IMS (2025), it's treated as draft and must be recomputed if you take IMS actions after the 14th. Follow up with suppliers proactively. After supplier files late, invoice appears in next GSTR-2B โ€” claim then (subject to Nov 30 deadline).
You must reverse the ITC in the GSTR-3B of the month in which the 180-day period expires, along with 18% p.a. interest from the date of original ITC claim to the date of reversal. Report reversal in GSTR-3B Table 4(B)(2). Once you pay the supplier, reclaim the ITC in that month's GSTR-3B Table 4(D)(1). Many businesses miss this until it surfaces in a GST audit. Use our 180-day tracker above to monitor all open invoices. Alert yourself at 150 days to ensure payment is processed before the deadline.
Section 17(5) blocks ITC on: (1) Motor vehicles โ‰ค13 seats for personal/general use; (2) Food, beverages, outdoor catering, club memberships, health/fitness services; (3) Employee health/life insurance (unless statutory obligation); (4) Works contract for immovable property construction on own account; (5) Goods and services for own-account immovable property construction; (6) Goods lost, stolen, destroyed, or given as free gifts; (7) Tax paid under Sec 74/129/130 (fraud/penalties). These are blocked regardless of business use โ€” there is no "predominantly for business" exception under 17(5).
The last date to claim ITC for FY 2025-26 invoices (April 2025 to March 2026) is the earlier of November 30, 2026 or the date of GSTR-9 filing for FY 2025-26. Critical trap: if you file GSTR-9 before November 30 (e.g., in September 2026), the ITC window closes immediately on that date โ€” even if pending reconciliation would have uncovered additional ITC. Strategy: complete GSTR-2B reconciliation for all 12 months by October 2026, claim any missed ITC, then file GSTR-9 only after. After the deadline, unclaimed ITC is permanently lost with no recourse.
Yes. After paying RCM tax in cash, the registered recipient can claim ITC in the same GSTR-3B period โ€” making RCM largely tax-neutral. Report RCM liability in Table 3.1(d) and claim ITC in Table 4(A)(3). Cannot use ITC to pay RCM โ€” pay cash first, then claim ITC. Exceptions: RCM ITC is blocked if the supply falls under Section 17(5) (e.g., RCM on motor vehicles for personal use). Composition dealers cannot claim any ITC on RCM โ€” it's a pure cost for them. ITC on import of services (IGST paid on RCM) is also claimable in the same GSTR-3B.

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TAXAJ CA team reconciles GSTR-2B monthly, tracks 180-day reversals, applies Rule 42/43, reviews Section 17(5) blocked credits, and handles ITC demand notices and DRC-01 replies โ€” across India.

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