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input of office picnic

Manoj Pandey (Finance Manager) (72 Points)

09 January 2019

my clients organise a picnic for employees. pl advise, input available on exp like lodging fooding and transport.?

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Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 09 January 2019

Yes GST credit can be taken on lodging but not on restaurant but it can be claimed as expense

Jatin (Accountant) (3479 Points)
Replied 10 January 2019

No, you can't claim ITC on picnic expenses

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 10 January 2019

The ITC, in general, is available for any GST paid on services/ goods used for the furtherance of business. [ sec16(1) & 18(1)] The office outing is a morale / team building activity which leads to OR INTENDED TO LEAD TO much better employee relations. Nexus to business not in doubt. For confirmation also allowable under Sec 37 of the IT Act.

There are some restriction in Sec17(5) relating to supply of food & beverages. However, if the outing is arranged as a package by a hotel or event or tour manager then initially they can avail this credit [ reduce their cost] and you would be able to avail the credit for the event/ tour.

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