Every registered taxpayer under GST who continues any business wherever in India/State can avail Input tax credit (ITC). Moreover, the ITC on Staff Welfare Expenses amount allowable to him will be credited to his e-credit ledger. The ITC on uniform expenses under GST is permissible to the degree utilized in the course of business to the amount of supply. The ITC on staff uniform credit is accessible subject to the restrictions listed in Sub Section 5 of 17 of the GST Act.
An entity incurs different ITC on Traveling Expenses of directors in the course of day-to-day activities. Some of the common examples of input tax credit on uniform to employees are telephone bills, internet charges, business travel expenses, and taxi services for pick and drop of employees, outfits and defensive caps for employees. The inquiry which emerges is whether staff welfare expenses under GST that is caused by the employee, could be utilized. We look at this and different viewpoints on ITC eligibility on employee-related expenses.
In this article we'll discuss important topics like GST on travelling expenses, ITC on travelling expenses for business, can we take GST input on travelling expenses, ITC on insurance of employees, GST on staff welfare expenses, ITC on travelling expenses of directors, GST input on staff welfare and much more.
1. For motor vehicle having seating limit of not more than thirteen (including the driver)
Here is the list of transactions on which you can claim ITC on motor vehicle:
A). ITC on renting, leasing or employing of such motor vehicles for the transport of people is accessible as follows:
B). ITC on insurance, repair or maintenance in regard to such motor vehicles
Whereas, for the motor vehicle with the seating limit of more than 13 people there is no such restriction to avail ITC on such vehicle.
2. The ITC is restricted on plastic surgery, outdoor catering services, beauty treatment, cosmetics, health services, food and beverages: ITC in regard of such products or/and services or both will be accessible where:
3. Club membership, fitness and health centres, travel benefits stretched out to employees on vacation, for example, leave. ITC will be accessible where:
4. Goods distributed as gifts.
5. ITC is not available on the goods and services that are used for personal purpose.
Here are some of the regularly accrued expenses on which ITC is eligible: