Answer

1. F

   Facts

   No. Items listed in Sec 17(5), such as most motor cars, food and beverages, and goods for personal use, are blocked even if they appear in your GSTR-2B.

2. P

   Provisions and law

   • Sec 17(5), CGST Act 2017Lists blocked credits, such as motor vehicles (with exceptions), food and beverages, club membership, works contract for immovable property and goods for personal use.
   • Circular 170/02/2022-GSTExplains reporting of ITC reversals in GSTR-3B: permanent reversals in Table 4(B)(1), reclaimable ones such as Rule 37 and 37A in Table 4(B)(2).
3. A

   Analysis

   GSTR-2B shows all invoices reported against your GSTIN; it does not judge eligibility. You must exclude blocked credits yourself. As per Circular 170/02/2022-GST, such credit is shown in Table 4(A) and reversed in Table 4(B)(1). There are exceptions, for example vehicles used for further supply or for transporting goods, so check the use before deciding.

4. C

   Conclusion

   1. 1Tag purchases in the register as eligible or blocked.
   2. 2Exclude blocked credit from the ITC claimed, reversing it in Table 4(B)(1).
   3. 3Check exceptions in Sec 17(5) for vehicles and food.
   4. 4Keep the working for audit.

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