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ITC on machinery using for preparing food

ITC / Input 133 views 3 replies
we are a pvt ltd company and provide free lunch to all the employees
we purchased a machinery to prepare the food for employees and paid IGST on it
can we claim ITC on it
Thanks
Replies (3)
Supply provided by employer to employee in course of employment is not a supply as per Schedule III. So, no GST is payable on such transaction

But anything Free is provided in GST then section 17(5) is applicable , so ITC HAS TO BE REVERSED (U CANNOT CLAIM ITC)
..
Dear.,

If it's not a Supply... Then why not ITC can't available?

Dear Raja

According to Premise of Advance Ruling Judgment in the case of Caltech Polymers Pvt. Ltd., Kerala -
The supply of food in canteen from employer to its employee is cover under the defination of supply (section 7 cgst)

Moreover supply by employer to employee is exempted upto 50k, so its not cover Under Non Gst Supply


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