Q. 745 Kindly confirm whether the input tax credit taken on the purchase of air tickets for travelling for business purposes comes under block credit of 17(5) as the department has raised the issue that the same qualify under clause (aa) of section 17(5) vessels and aircraft and needs to be reversed along with interest and penalty. Kindly advise. 

Ans. ITC is allowed if it is used for business purposes.

Q. 744 The registered person has purchased car in march 2022. he claimed input tax credit in respect of the car and claimed depreciation on the car. The amount of gst was not capitalized. The input tax credit is ineligible as per section 17(5). the dealer has filed gstr -9 as well as 9c for the financial year 2021-22 and no payment through DRC -03 was made. FURHER NO REVERSAL OF input tax credit was made up to oct 2023.i.e within the time limit under section 16(4) whether electronic credit ledger can be used for making payment through DRC -03 In the given case the dealer has made reversal of input tax credit in 3b of june 2023 i.e after the time limit under section 16(4) instead of drc-03. so there is procedural mistake by dealer. the revenue remains neutral. whethet the dealer should have paid the liable itc throgh DRC -03 even after time limit of 16(4). What corrective measures should be taken in the given case.

Ans. ITC reversal is a more crucial step that is being done.

Q. 743 On the basis of Circular No. 199/11/2023-GST dated 17.07.2023, can we exclude Employee benefit Expenses from the value of taxable services provided by Head Office to Branch Office (BO is eligible for take full ITC)? 

Ans. As per the circular, the employee cost will include employee benefit expenses and it is optional to exclude it from the value of taxable services.