Section 17(5)(g) ITC not allowed on goods/ service for personal consumption

This discussion clarifies that Input Tax Credit (ITC) is generally not allowed on goods such as helmets, shoes, and jackets provided to employees or contractors. This is because such items are often considered gifts or free samples, and according to Section 17(5)(g) of the CGST Act, ITC is restricted in these cases. Even if gifts to employees don't exceed the ₹50,000 threshold for being considered a 'supply', ITC must still be reversed under Section 17(5)(h).