What is Blocked Credit under Section 17(5) of the GST Act?

Section 17(5) lists goods and services on which Input Tax Credit (ITC) cannot be claimed, such as motor vehicles (except in specific cases), food and beverages, outdoor catering, club memberships, and personal consumption items.

What is the order of utilizing GST Input Tax Credit?

IGST credit must be fully utilized first against IGST liability, then CGST and SGST in any order. Only after IGST credit is exhausted can CGST or SGST credits be used to set off liabilities.

GST ITC OptimizerFY 2026-27

Maximize Input Tax Credit by identifying blocked credits (Sec 17(5)) and correct IGST utilization order.

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Quick Summary: GST ITC Optimizer

Input Tax Credit (ITC) allows you to reduce the GST you owe on sales by the amount of GST you already paid on purchases. In FY 2026-27, maximizing ITC involves adhering to Section 17(5) 'Blocked Credit' rules and following the strict utilization order where IGST credit must be fully exhausted before using CGST or SGST credits.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.