banner_ad

Input credit

This query is : Resolved 
Profile Image

Profile Image

(Querist)
12 January 2021 Hi All


Whether GST input credit is available on business promotion expenses (Gifts purchased for customers)?
Thanks in advance
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
12 January 2021 Yes, it's available.
With or without a formal sales promotion scheme in place, bought out goods that are distributed to dealers, customers, etc. can, by no stretch of imagination, be treated as 'gifts' within the meaning of Section 17(5)(h) of the CGST Act, 2017. As we know, under the Indian Contracts Act, 1872, even oral contracts are recognized and are enforceable and what is more important is the concept of 'consensus ad idem'. So long as it is agreed that companies distributing these goods are legally obligated to do so, these goods cannot be treated as 'gifts' at all.
Profile Image

Lekhraj sood

Profile Image

Lekhraj sood (Expert)
12 January 2021 It depends on the facts of the case, but generally would be available.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details