Input credit on gifts items purchase


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Querist : Anonymous

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Querist : Anonymous (Querist)
18 October 2018 Dear sirs/mam. Please let me know what about ITC availability on invoice of Gift Itmems 1. a event company purchased the Gift items for giving to his exhibitors/Clint's 2. For giving to his employees and vendors suppliers etc. As Diwali Gift Please clarify we can Take ITC situation s. And also Sweet bills. Thanks

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Expert : Anonymous

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Expert : Anonymous (Expert)
18 October 2018 No... ITC not available and it's blocked ITC.

29 October 2026 Sec 17(5)(h) blocks ITC only on goods given away as gifts. If the gift kits are part of the event package billed to exhibitors for consideration, they are inputs for a taxable supply and ITC is available. Gifts to employees up to Rs 50,000 per year per employee are not a supply, but ITC on them is still blocked.


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