ITC ELIGIBILITY FOR CORPORATE DAY OUT AMUSEMENT PARK GST

[SAFETAB LIFESCIENCE]

Dear Experts,

We are planning for a Corporate Day out taking all our staff to an amusement park. It is purely a staff welfare activity. Whether we can avail ITC of GST charged by the amusement park for their charges.

[RAJA SWAMINATHAN]

The fundamental Condition for availing input tax credit is that there should be a valid Invoice in the name of Corporation, the services shall not be used for personal purpose, The above activity is not specifically prohibted under section 17(5) of the CGST act. fwhere credit cannot be availed. For availing the benefit the invoice shall be in the name of corporation and not in the name of employee.

[SAFETAB LIFESCIENCE]

Dear Sirs,

No doubt, we will get invoice in the name of the company with our company's GST number. About 500 employees are going for this Day out and invoice will not be in the name of the employees.

What are the items which are not eligible for ITC under section 17(5)

[Nash Industries I Pvt Ltd]

Is the outing is in the course of furtherance of business, then ITC is allowed else no. ITC ineligible on staff welfare activity.

[Himansu Sekhar]

The amusements are for personal consumption of the employees. ITC is not aalable

[Himansu Sekhar]

sorry- available

[Ganeshan Kalyani]

Input tax credit is disallowed if the expenses are in the nature of personal consumption.

AI Summary

Input tax credit for corporate staff outings generally disallowed where services are for personal consumption; invoice and business nexus required.
A valid tax invoice in the corporation's name and a demonstrable business nexus are required to claim input tax credit. Services that constitute personal consumption or staff welfare typically lack the business purpose and are treated as ineligible under the blocked-credit principles of section 17(5); only where the outing is shown to be in the course of furtherance of business might ITC be considered.