House keeping materials purchase

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Mukesh babu

91 Points Posted on 16 August 2020

whether house keeping material purchase can be eligible for availing input tax credit since it is coming in the purview of employee benefit/staff welfare?

Replies (5)

Quick Summary

Housekeeping material purchased for office or business premises is generally eligible for ITC if used in the course or furtherance of business and supported by a valid tax invoice. It is usually treated as business expense, not staff welfare, unless specifically for employee benefits.

sabyasachi mukherjee

Profession

19978 Points Posted on 16 August 2020

Again it should have a valid tax invoice bill from a registered dealer.The dealer must file returns not under a composite dealer.
There are other conditions effective.

ansh 99

117 Points Posted on 16 August 2020

No you cannot avail input , it is a blocked credit under section 17(5)b

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 16 August 2020

House keeping material purchase is not employee benifit/ staff walfare, it's business expenses relating to business,used and to be used for furtherance of business.
So, ITC for same is allowed subject to sec.16 i.e availability of valid Tax invoice, filing return ect.

it's not blocked u/s 17(5)(b)

Vijayprakash P

776 Points Posted on 16 August 2020

As per the provisions of section 16(1) only condition for availing the input tax credit is that input/input service/capital goods should be used or intended yo be used in the course or furtherance of business. If at the later stage such intention is not fulfilled the ITC claimed shall have to be reversed along with the interest payable as per the the provision of section 50.

Aashok Kumar Sharma

Finance/Compliance Consultant

77990 Points Posted on 06 November 2026

ITC is available. Housekeeping material is not in the blocked list.

• Sec 17(5)(b) blocks ITC only on specified supplies: food and beverages, outdoor catering, beauty treatment, health services, cosmetic or plastic surgery, leasing/rental/insurance of blocked vehicles, club or fitness memberships, and travel benefits to employees on vacation (with exceptions where obligatory under law). Cleaning materials, washroom consumables and floor cleaners used to maintain business premises are none of these.

• They are used in the course or furtherance of business (Sec 16(1)), so ITC is eligible, subject to a valid tax invoice, receipt, the supplier's return filing and GSTR-2B reflection.

• Exception: items given to employees for personal consumption at home are a gift or personal use, and ITC is blocked (Sec 17(5)(g)/(h)).

• Apportion under Rule 42 if the premises also serve exempt supplies.