Which purchases are not eligible for input tax credit under GST?

Section 17(5) of the CGST Act lists the purchases on which ITC is blocked. The ones small businesses meet most often are:

• Motor vehicles for carrying up to 13 persons (including the driver), unless you use them to resell them, to carry passengers, for driver training, or to transport goods.
• Food and beverages, outdoor catering, beauty treatment, health services and cosmetic or plastic surgery, unless the same category of service is your own outward supply or the law obliges you to provide it to employees.
• Membership of a club, health or fitness centre, and travel benefits given to employees on vacation.
• Rent-a-cab, life insurance and health insurance, again with exceptions where the law requires you to provide them or they form part of your outward supply.
• Construction of an immovable property (including works contract services) for your own use, other than plant or machinery.
• Goods or services used for personal consumption, and goods lost, stolen, destroyed, written off or given as gifts or free samples.

Ordinary office furniture used for the business is not on this list, so its ITC is generally claimable, subject to the usual conditions (valid tax invoice, goods received, supplier's tax paid, and the credit reflected in GSTR-2B). Blocked ITC is not claimed in GSTR-3B; the cost simply becomes part of your expense. Please confirm the treatment of your specific purchases with your CA.