itc on purchases

[Madhavan iyengar]

A Company has purchased some t shirts which will be given to employees free of cost the t shirts will bear the name of the company t shirts will be worn by employees at various business events of the company

a) is ITC available on the purchase of t shirts

b) will GST be leviable on the t shirts given free of cost and if gst is levied can then ITC be claimed

AI Summary

Input Tax Credit on company-branded employee uniforms; GST not leviable where shirts are used in course of business.
Input tax credit is available on purchase of company-branded T shirts used by employees in the course of employment and for business purposes; such shirts, paid for and used by the company while employees perform official duties, are not personal gifts and are not impeded by blocked credit rules. No outward supply arises when the company uses the shirts for its own business purposes, so GST is not leviable as a supply and the ITC claim remains intact.