Eligibility of taking GST Credit on purchase of safety shoe

[Ragavan Vijayakumar]

We request expert opinion on taking GST credit on purchase of safety shoe to company workers. The company purchased safety shoe in the company name and GST is also charged in the invoice. The company recovered part of the cost of the shore from the salary of the workers and the remaining cost of the shoe was borne by the company. in this case ,

1.whether the company eligible to take entire GST credit as per invoice?

2. Whether the company is eligible to take GST credit for the cost borne by the company

3, Whether the company is not eligible for the whole invoice amount ?

Regards,

V.Ragavan

AI Summary

Input tax credit on safety shoes: ITC allowed if used for business and adjusted for employee recoveries.
Availability of input tax credit on safety shoes depends on business use and treatment of employee recoveries: ITC is generally available if shoes are used for taxable supplies or for performance of duties; recoveries from employees may constitute a supply attracting GST and require adjustment, and where provision is obligatory or integral to the manufacturing process ITC is recognised to the extent of the employer's cost after recoveries.