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GST Input Tax Credit Recovery: Section 17(5)

Blocked ITC under Section 17(5) - reversal rules, time limits, and how to recover.

GetYourCA Team
2 April 2026·Updated 2 April 20261 min read12.5K views
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ITC Blocked Under Section 17(5)#

Items Not Eligible#

  • Motor vehicles (except hiring)
  • Food/refreshments
  • Membership fees
  • Employee benefits
  • Works contract (goods)
  • Goods for personal use

Reversal Required#

  • Disallowed every month
  • Add to output liability
  • Interest 18% if missed

Time Limit#

  • Recover ITC within:
    • 6 months from date of supply
    • Or 6 months from invoice (FY 2025-26)

How to Claim#

  1. Review purchases
  2. Identify blocked items
  3. Reverse in GSTR-3B
  4. Pay interest if delayed

Recent Changes#

  • Time limit extended to 6 months
  • Works contract clarified

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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