We have a factory in village area and office at Metro area . As a safety measures we are providing hand sanitizer to all our employees and workmen. We also had to provide transportation facility to some essential staff since there was no public transport like trains and buses upto June 2020. This was less than 13 seater car
Can we avail Input Tax credit on the GST portion on (1) Sanitizer and ( 2) Renting of Motor Vehicle?
There should not be any impediment in ITC on sanitisers kept or used in office / factory / business establishment. However giving away sanitisers may raise eye brows of Deptt. as they may treat it as personal consumption and thus attracts Sec 17(5). However it is arguable that it is legally required as per COVID-19 guidelines issued by MHA.
ITC on passenger vehicle being less than 13 seater and also not covered in any of the exceptions will be blocked.
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