GSTAT Agra holds ITC on Insurance of Merchandise Stock Not Blocked Under Section 17(5)

GSTAT Agra dismissed the Department's appeal against the reduction of a GST demand from approximately ₹53.24 lakh to ₹97,610. In particular, it upheld ITC of ₹1,31,219 relating to insurance of merchandise stock, observing that Section 17(5)(ab) does not block general insurance services covering stock or merchandise. The Tribunal also accepted the appellate authority's verification of job-work and machinery repair expenses, capital goods and cancelled e-way bills. The decision underscores that ITC eligibility must be examined with reference to the specific statutory restriction and supporting transaction records, rather than through broad-brush disallowances.