Input credit

This query is : Resolved

Sonal (Querist)
Follow

12 January 2021 Hi All

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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

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.

Message likes : 1 times

Lekhraj sood

Lekhraj sood (Expert)
Follow

12 January 2021 It depends on the facts of the case, but generally would be available.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

THUSHAR MURALI KRISHNA

ACCFIN SOLUTIONS

Vishal Kapadiya

Sagar Khakhiwala

JAYDEEP MITRA

Subscribe Now

Input credit

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Senior Executive

GST CONSULTANCY

GST CONSULTANT

Accountant

Manager- Finance and Compliance