Eligibility of GST ITC credit

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A.S.SUNDARARAJAN

A.S.SUNDARARAJAN

(Querist)
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22 November 2019 We request expert opinion regarding the eligibility of GST ITC credit for the following :

One pantry is maintained in factory office and coffee/ vending machine is installed and this is used by employees, customers and suppliers. The factory purchases tea been, sugar and coffee seeds and other materials relating to pantry with tax invoice. Whether that factory is eligible to take GST credit for the above.

Whether restriction will be applicable for taking credit for the above based on 17(5) of GST act or the credit can be taken based on usage of the same by customer and supplier which is furtherance of business.

JATIN DUGGAL

JATIN DUGGAL (Expert)
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22 November 2019 No Credit is available in terms of Section 17(5)(b)(i) of CGST Act, 2017 being Foods and beverages. In case of Food & Beverages credit is available only in case such inward supply is used for making outward taxable supply of same category of goods or services or both or as an element of taxable composite or mixed supply.

Thus, no justification the same goods are used for customer and accordingly in the course or furtherance of business.

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