Sanjeev (Auditor) (153 Points)
13 October 2017Hi sirs,
We bought gifts for distribution to our clients/staffs. My question: - 1.
If in invoice, GST is included - Whether can we take input of GST? 2. If in invoice, GST is not included - Whether we are under obligation to pay under RCM? If yes, can we take input?
Thanks in advance
Pankaj
(lawyer)
(29 Points)
Replied 13 October 2017
RAJA P M
("Do the Right Thing...!!!")
(127542 Points)
Replied 13 October 2017
CA_Suhani
(Chartered Accountant- GST Consultant- Internal Auditor)
(169 Points)
Replied 13 October 2017
Q1: If in invoice, GST is included - Whether can we take input of GST?
>> ITC for items issued as free supplies needs to be reversed. Hence, even if the invoice shows GST, you will not be able to take credit of the same.
Q 2. If in invoice, GST is not included - Whether we are under obligation to pay under RCM? If yes, can we take input?
>> If the Items are purchased from Composition dealer, then you need not pay tax under RCM. If the items are purchased from an unregistered dealer, liability to pay GST on reverse charge arises.
Additionally, if gifts below Rs 50,000 per employee per annum are given, then no need to reverse the ITC paid on RCM. However, for free supplies to clients, ITC needs to be reversed.
RAJA P M
("Do the Right Thing...!!!")
(127542 Points)
Replied 13 October 2017
CAclubindia
