GST Input Tax Credit on Personal Consumption : GST News 442

Whether Input Tax Credit on following below mentioned expenses is allowed for employees. ?

(1) Rent paid for coffee machine

(2) Purchase tea & coffee powder

(3) Purchase of RO water purifier capitalized in books

(4) AMC of RO machine charge to P&L

Answer:  Since all the above expenses are for personal consumption of employees , hence Input Tax Credit will not be available.

Refer Section 17(5) of CGST Act 2017 : which says

Notwithstanding anything contained in sub-section (1) of section 16 and sub- section (1) of section 18, input tax credit shall not be available in respect of the following, namely:—

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