Credit on B2C Transaction

[SURYAKANT MITHBAVKAR]

We have manufacturing pharma machine and provide free food to our employees. While preparing food we require vegetable which we brought from market or mall. Can we avail credit of GST paid on that. Since the expenses are furtherance to the business.

[KASTURI SETHI]

In my view, it is not in course furtherance of business. Not admissible.

[Himansu Sekhar]

Food materials specifically excluded under sec 17(5) of cgst act

AI Summary

Input tax credit on employee food purchases disallowed where such supplies fall outside business use under GST. Input tax credit is not admissible on purchases of raw food used to prepare free meals for employees because such consumption is regarded as non-creditable under the GST blocking provisions; supplies consumed as employee food are excluded from input tax credit entitlement and should be treated as blocked credits rather than inputs for making taxable supplies.