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:—
|(g)||goods or services or both used for personal consumption;|