ITC eligibility on Food

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients running a Training institute in Chennai and providing food to the student who join the course during the course period. We are collecting the course fees from the student along with food, now my query is that, do we eligible to claim the input tax credit on the food bill.

Thanks in Advance.

AI Summary

Input tax credit on food is generally blocked unless food is an element of a taxable composite or mixed supply.
Input tax credit on food and beverages is generally blocked under the exclusion rule, but the proviso permits credit where the inward supply is used to make an outward taxable supply of the same category or where it is an element of a taxable composite or mixed supply, or where provision is obligatory for an employer; whether training plus meals is a composite or mixed supply is fact-specific and determines eligibility.