ITC available on uniform purchased for emplyee

[Vivek anandhan]

Dear Expert

We are manufacturing concern . We are purchasing uniform to our employee duly paid GST.

Can we take ITC on uniform purchased for employee.

Regards

Vivekanandhan

AI Summary

ITC on Employee Uniforms Permissible Under GST; Not a Free Supply Per Section 17(5) of CGST Act. A manufacturing company inquired about the eligibility of Input Tax Credit (ITC) on uniforms purchased for employees under the Goods and Services Tax (GST) framework. Experts in the forum agreed that ITC is permissible as the uniforms are for business purposes and not restricted by Section 17(5) of the CGST Act. However, concerns were raised regarding whether the provision of uniforms without consideration constitutes a 'supply' under GST, potentially affecting ITC claims. It was concluded that uniforms, used for official purposes, do not constitute a free supply, and thus ITC should be claimable.