The Institute of Chartered Accountants of India (ICAI) has released the revised edition of its “Handbook on Blocked Credit under GST”, updated till 10th November 2025, aimed at enhancing clarity and compliance among taxpayers and professionals regarding Input Tax Credit (ITC) restrictions under the Goods and Services Tax (GST) regime.
A Key Resource on Section 17(5) of the CGST Act
The publication provides a comprehensive explanation of blocked credits under Section 17(5), detailing circumstances in which ITC cannot be availed. It offers a structured analysis of legal provisions, recent amendments, and judicial pronouncements, easing practical interpretation for industry and professionals.
Leadership Emphasizes Importance of Updated GST Knowledge
In his foreword, the President of ICAI, highlighted that as GST continues to evolve with digital advancements and policy refinements, updated technical literature plays a critical role in supporting members and stakeholders. He stated that the revised handbook will serve as an “excellent resource for strengthening understanding of blocked credits under GST.”
The GST & Indirect Taxes Committee, led by Chairman and Vice-Chairman, reiterated that blocked credit remains a sensitive area in compliance and the updated edition helps bridge interpretational gaps arising from frequent legal changes.
Highlights of the Revised Edition
- Updated coverage on conditions for availing ITC, including documentary requirements and supplier compliance conditions.
- Detailed analysis of new amendments impacting ITC, including matching mechanisms under Sections 16 and 38.
- Incorporation of recent Supreme Court and High Court decisions that shape understanding of ITC as a concession vs. vested right.
- Expanded guidance on sectors such as motor vehicles, food & beverages, insurance, construction, and employer–employee supplies, where ITC is often restricted.
- Clarifications issued through various CBIC circulars, including those on deemed receipt of goods, time limits for availing ITC, and treatment of retention payments.
Support for Smooth GST Compliance
The publication reinforces ICAI’s commitment to supporting the Government’s objective of promoting transparency, ease of doing business, and uniform understanding of GST provisions. The handbook is expected to benefit GST practitioners, industry professionals, corporates, and academicians.
The ICAI encourages stakeholders to provide feedback and access regular updates on GST developments through its official portal.
The Handbook can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/12/Handbook-on-Blocked-Credit-under-GST-November2nd-2025.pdf
