Input credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2018 Our company organize a party on the vacation of Women days. And gives the complementary lunch as a treat in Hotel. Hotel raise the bill in favour of company and the amount of Bill is Rs Grand Total 35955.00 (32611+5% svc+2.5% CGST+2.5 SGST (1630.60+856.07+856.07). But the bill payment made by some of the employee who is in company role. How we will treat the same in our books of account.

1. Can we take input credit or the same
2. How to post the entries in tally

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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08 March 2018 As per the provisions of GST Act sec 17(5), a business cannot avail ITC on food and beverages, outdoor catering, unless they are used for making output supply of the same category of goods and/or services. So questions of ITC Not arise.