Section 17(5) - Reopening the Architecture of Blocked ITC

Section 17(5) has historically operated as an exception to the general principle of ITC under Section 16 of the CGST Act. The 57th GST Council's proposal to remove restrictions on specified categories, including outdoor catering, health and life insurance, telecommunication towers, pipelines outside factory premises, free samples, and goods destroyed or written off on expiry of shelf life as required by law, signals a potential shift in the treatment of blocked credits.