TaxTMI 
TaxTMI 
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.
Credit on B2C Transaction
15 Jul 2017 
2 Replies 
5978 Views Asked by
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. (AI Summary)
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. (AI Summary)
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