GST ITC on employee uniforms is allowed if used for business purposes. Uniforms aren't restricted under Section 17(5), so credit can be claimed subject to general ITC conditions like proper invoicing and usage in business.
01 January 2025
Yes, a company can claim GST input tax credit (ITC) on employee uniforms provided that these uniforms are purchased for the purpose of furthering the business. According to Section 16 of the CGST Act, input tax credit can be claimed on goods or services acquired for business purposes, and Section 17(5) does not restrict ITC on uniforms.