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

Pharma company challenges GST credit denial for employee meals, citing business operation support; Section 17(5) exclusion debated. A manufacturing company in the pharmaceutical sector inquired about claiming GST credit for vegetables purchased to provide free meals to employees, arguing these expenses support business operations. One respondent stated that such expenses are not in furtherance of business and are not admissible for GST credit. Another respondent pointed out that food materials are specifically excluded from credit eligibility under Section 17(5) of the CGST Act.