ITC on suits purchased by Director

Dear Colleague,

I have doubt regarding the ITC on Suits and other things purchased by Director , Is the same is blocked under GST or whether the same is to construct as business purpose?

Please do share your views on the same.

Regards

 

Replies (1)

Input Tax Credit (ITC) on suits purchased for a Director is generally not advisable and often treated as an ineligible expense. Under GST law, ITC is strictly limited to goods/services used in the course or furtherance of business. Since suits are typically considered personal attire, claiming ITC on them poses a significant risk of disallowance and litigation. To qualify for ITC, you must prove the expense is an essential business requirement, not a personal one.

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