Answer

1. F

   Facts

   Sec 17(5) blocks ITC on items such as motor vehicles for personal transport (with exceptions), food and beverages, outdoor catering, club and health memberships, travel benefits for staff, works contract for immovable property, goods lost or given as free samples and gifts, and personal use.

2. P

   Provisions and law

   • Sec 17(5), CGST Act 2017List of blocked credits such as motor vehicles, food, club fees and personal use
   • Sec 50(3), CGST Act 2017Interest on ITC wrongly availed and utilised
3. A

   Analysis

   These invoices appear in GSTR-2B, so the portal does not stop you from claiming them. If a staff party invoice shows tax of ₹27,000, report it as ineligible in Table 4(B)(1) or 4(D) as the form requires. Some items are allowed where the law makes an exception, such as food provided under a legal obligation to employees.

4. C

   Conclusion

   1. 1Tag blocked categories in your expense ledgers
   2. 2Check exceptions for each item
   3. 3Reverse or exclude blocked credit in GSTR-3B
   4. 4Review the list at year end

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.