What GST returns and rules does GSTBuddies support?

GSTBuddies audits GSTR-1, 2A, 2B, 3B, 9 and 9C. Checks include Rule 37 (180-day ITC reversal), Rule 42/43 common-credit reversal advisories, Rule 86B, Section 16(4) ITC time-bar, Section 50 interest, Section 47 late fees, reverse-charge (RCM) checks, the annual Table 8 ITC reconciliation and the three-way GSTR-1 vs 3B vs 9 reconciliation. Every figure is cited to the CGST Act and Rules. Section 17(5) blocked credits depend on what each expense was, which a GST return does not carry, so that review stays with your books.

What file formats can I upload?

PDF, Excel, JSON and ZIP. Upload GSTR PDFs from the GST Portal, Excel ledgers from Tally, Busy or any party ledger (.xlsx/.xls), JSON exports for GSTR-2A/2B/3B/9/9C, or the portal's ZIP downloads — GSTBuddies extracts and classifies them automatically.

Is GSTBuddies free to try?

Yes. Sign up to get free credits every month, no credit card required, and run GST compliance checks to see the results before you buy.

Yes. GSTBuddies uses AES-256 encryption on AWS infrastructure and never shares your data. Uploaded files are processed and deleted after 7 days.

Section 17(5), CGST Act 2017

Section 17(5): blocked credits (ineligible ITC)

Some input tax credit is blocked by law no matter how the expense relates to your business. Claiming it triggers a reversal with interest. Here's the list that matters most.

What "blocked credit" means

Section 17(5) lists supplies on which ITC is not available, overriding the general entitlement under Section 16. If you claim it, the credit must be reversed, with interest under Section 50(3) if utilised.

Commonly blocked credits

Motor vehicles for transport of persons (seating ≤ 13, including driver) — except when used for further supply, passenger transport, or driving training.
Food and beverages, outdoor catering, health services, beauty treatment, cosmetic surgery — unless used to make an outward taxable supply of the same category or where providing it is obligatory under law.
Membership of a club, health or fitness centre.
Rent-a-cab, life insurance, health insurance — except where obligatory.
Travel benefits to employees on vacation (leave/home travel concession).
Works contract services for construction of immovable property — except for plant and machinery, or where it is an input service for further works contract.
Goods/services for construction of immovable property on own account (capitalised), other than plant and machinery.
Goods lost, stolen, destroyed, written off, or disposed of as gifts or free samples.
Tax paid under composition (Section 10), and certain demands.

Blocked credits are a frequent audit finding because the expense looks like a normal business cost — but Section 17(5) overrides eligibility regardless of business use.

What GSTBuddies does — and does not — do here

Section 17(5) turns on what each expense was, and a GST return never carries that. The returns show a credit was taken; only your purchase register or books say whether it was for a car, a staff meal or a building. So GSTBuddies does not screen your ITC against the Section 17(5) list — identifying blocked credit stays a manual review against your books, and any tool that claims to do it from returns alone is guessing.

What the audit does cover is the credit trail around it: ITC claimed in GSTR-3B against the eligible GSTR-2B figure, the Section 16(4) time-bar, and the annual Table 8 reconciliation — so an excess claim surfaces even when its reason has to be established from your records. Explore the full compliance suite or GSTR-2B vs 3B ITC matching.

FAQ

Is ITC on motor vehicles always blocked?

ITC on passenger motor vehicles (seating ≤ 13) is generally blocked, except when used for further supply of vehicles, passenger transport, or driving training.

Can I claim ITC on construction of my office building?

No. ITC on goods/services for construction of immovable property on own account is blocked under Section 17(5), other than for plant and machinery.