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Staff welfare expenses

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(Querist)
13 October 2018 A bakery and tea shop whose get GST registration and provide tea and snacks daily to the their employees at free of cost. There is no cash in and out. on the other hand stocks ( for trading purposei.e Tea powder and Sugar and snacks ) was goes out. What is the accounting treatment for this transactions?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
14 October 2018 Yes book it under staff welfare expenses.
Debit staff welfare expenses and credit stock account/ purchase. No ITC can be available on this purchase.
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P MURUGAN

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P MURUGAN (Querist)
15 October 2018 Can I/we credit the capital account in lieu of Stock Account/Purchase?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
15 October 2018 No, stock account needs entry and ITC can't be availed on free supply.
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