S1: Under GST, the 'Input Tax Credit' (ITC) on motor vehicles is available if they are used for further supply of motor vehicles. S2: ITC on food and beverages is available if they are used for making an outward taxable supply of the same category. Which statement(s) is/are correct?
Explanation:
Both statements correctly describe the exceptions under Section 17(5) of the CGST Act. ITC is blocked for motor vehicles and food/beverages generally, but it becomes available if they are used in the same line of business for making an outward taxable supply.
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