Section 28, The Goods and Services Tax Act, 2009

(1) In this section– “entertainment” means the provision of food,beverages, tobacco, amusement, recreation or hospitality of any kind, including gambling; “motor vehicle” means a motorised on-road or off-road vehicle designed or adapted for the transport of 12 or fewer seated passengers. “mobile phone handset” means a portable telephone using a cellular radio system which enables radio transmission of packets of data through voice, text and the internet. (2) Notwithstanding any other provision in this Act, no entitlement to an input tax credit arises for a person in relation to a taxable acquisition or import by the person to the extent that– 46 47 Time of Value of Net amount to be remitted in tax period. Goods or services for which no input tax credits are allowed. (a) the acquisition or import is not made in the course or furtherance (including commencement or termination) of the person’s taxable activity; (b) the acquisition or import or hiring or lease is of a motor vehicle or of spare parts or repair and maintenance services for such vehicles, unless the person’s taxable activity involves dealing in or hiring out or leasing of such vehicles and the vehicle and the spare parts were acquired for that purpose; (c) the acquisition or import is used to provide entertainment, to the extent of that use, unless the person’s taxable activity involves providing entertainment and the entertainment was provided in the ordinary course of that taxable activity and was not supplied to a related person or employee; (d) the acquisition is of a membership or right of entry for any person in a club, association or society of a sporting, social or recreational nature; (e) the acquisition or import is of a private or domestic nature; (f) the acquisition or import or hiring is of a mobile phone handset, or spare parts or repair and services thereof, unless the person’s taxable activity involves dealing in or hiring out such handsets and services and the handset and the spare parts were acquired for that purpose; or (g) the acquisition or expense relates to occupation of holiday or hotel accommodation by a director, employee or guest of the taxable person.