GST Input Tax Credit

Hello 

Can we take input tax credit for purchase of Masks for Staff in the company

 

Replies (7)
Quick Summary
This discussion explores whether Input Tax Credit (ITC) can be claimed on masks purchased for company staff under the CGST Act 2017. While Section 17(5) generally blocks credit for staff welfare and health services, the consensus leans towards eligibility if the provision of masks is considered a mandatory preventative measure enforced by law, such as government directives for workplace safety.

As per the Provision of Section 16(1) of the CGST Act 2017, Input Tax Credit (ITC) on Inputs, Input Services and Capital Goods used or to be used in the course of or furtherance of business can be claimed as ITC (subject to Section 17(5) of the CGST Act 2017).

As per above provision you can claim ITC on Mask Purchased for Company staff. It's for furtherance of business.
As per section 17(5)b
any goods or service provided in nature of health services to employees will be a blocked credit infact anything in nature of staff welfare is a blocked credit
so u cannot take ITC of Mask expenses for staff
In my view ansh is correct.
In my view, it's not considered as health services,(like treatment of employees) it's prevention measures.

However, if it's blocked as per health services than also Inputs on the same can be claimed, if the same are obligatory (enforced by any Law for time being).
So, if any expense is mandated by the government on the employer, the employer will be able to claim ITC for the same.

As per the directives issued by the Ministry of Home Affairs (MHA) in this regards, it's compulsory for employers to follow directives for workplace as like:
Wearing of face cover is compulsory in all work places and adequate provision of the same should be made provision for thermal scanning, handwash, sanitizer will be made available at all entry and exit points and common areas ect......
So, ITC can be availed..

As per section 17(5)(b) you are not eligible to take credit

Dear sagar patel g

health insurance is also a protective measure ..
then why health insurance provided to employees is a blocked credit just because it is nature of staff welfare and the same is blocked credit .
Dear Mr. Ansh
Health insurance is specifically mentioned in Sec.17(5) as blocked credit.

And kindly read second point also
if it's blocked but if it's compulsory / obligatory as per law than we can take ITC

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