ITC on Company Uniform

Hello All, Can we avail ITC on purchase of Comapny Uniform and distribute to employee for free.
Replies (2)
Quick Summary
This discussion explores the eligibility of claiming Input Tax Credit (ITC) on company uniforms purchased and distributed to employees for free. It clarifies that such distribution is considered an outward supply under Schedule I of the CGST Act 2017, making it liable for GST. The consensus is that ITC can be claimed when tax is payable on outward supplies, with no specific restrictions. The thread also touches upon whether treating uniform expenses as employee welfare costs affects ITC eligibility.

Such free distribution also falls within the scope of Schedule I to the CGST Act 2017 and hence liable to GST. Further when tax on outward supplies is payable, no restrictions are put on ITC and hence ITC can also be claime.
Thank You for your Response, one doubt if we treated the expenses as employee welfare expenses, is there any change of the assumption to availe ITC

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