TaxTMI 
TaxTMI 
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
ITC available on uniform purchased for emplyee
18 Mar 2019 
5 Replies 
2720 Views Asked by
Input tax credit on employee uniforms is allowable when purchased and used in the course of business, subject to supply analysis.
ITC on uniforms is allowable where uniforms are purchased and used in the course of business; Section 17(5) does not explicitly bar such credit. A raised concern is whether providing uniforms to employees without consideration constitutes a taxable supply under the supply definition and Schedule II (transfer or making available for use), potentially triggering ITC reversal; the prevailing view in the discussion treats uniforms as business-use items, not business assets, and regards Schedule II Para 4 as inapplicable so no reversal is required. (AI Summary)
ITC on uniforms is allowable where uniforms are purchased and used in the course of business; Section 17(5) does not explicitly bar such credit. A raised concern is whether providing uniforms to employees without consideration constitutes a taxable supply under the supply definition and Schedule II (transfer or making available for use), potentially triggering ITC reversal; the prevailing view in the discussion treats uniforms as business-use items, not business assets, and regards Schedule II Para 4 as inapplicable so no reversal is required. (AI Summary)