Can we take ITC on Employee Uniforms?
GST on any expenses incurred in the course or for furtherance of business, unless it is specifically blocked, can be claimed as ITC.
Uniforms are not covered under blocked credit u/s 17(5).
Uniforms are used by the employees only during office hours when attending official duties. They don’t wear it for personal functions or occasions. It is given to employees as per the internal policy of the company. It is printed with Company Logo. So, it is a part of brand identity of the company. Hence, it is not for any personal consumption or gift to employee. It is purely a business expenses and hence ITC is available.
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