itc on coffee machine

The above inward supply of service is not covered under section 17(5) hence credit is eligible.

This blog explains the ITC aspect of coffee machines in a very clear and practical way. I liked how the author broke down eligibility rules without making it confusing for business owners. For companies investing in an industrial coffee machine, this information helps in planning taxes and purchases smarter. It also highlights mistakes that people make while claiming input tax credit. Overall, the article feels useful and relevant for businesses.

ITC on monthly rent of a coffee machine is generally NOT eligible if the arrangement is treated as food & beverages provided for employees’ personal consumption, as it is blocked under Section 17(5)(b).

However, ITC may be allowed if the machine is taken on rent only (equipment leasing) and coffee/tea consumables are billed separately, and the expense is demonstrably for business use (e.g., client meetings, factory mandated facilities) and not a statutory canteen substitute.

In general, input tax credit (ITC) on the monthly rent of a coffee machine provided for employees is not eligible, as it is considered a welfare/employee benefit expense and not directly related to taxable outward supplies.

However, if the coffee machine is used exclusively for business purposes (e.g. in a client-facing area or required by law or company policy linked to business operations), eligibility may vary and should be reviewed on a case-to-case basis.

It’s advisable to check the specific GST provisions and consult a tax professional for confirmation hollow knight

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