ITC on Diwali Gift (Blanket)

This query is : Resolved

Rakesh Sharma (Querist)
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23 October 2019 Dear Experts,

Can we avail ITC on Gift (Blanket) to be given to employees on diwali?

Value is below 50 K.

Please advise

Rakesh Sharma

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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24 October 2019 If it crosses 50K , you need to charge GST then you can avail , less than 50K is exempted accordingly you can't take credit

CA Shiv Kumar Sharma

CA Shiv Kumar Sharma (Expert)
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24 October 2019 As per Section 17 (h) no ITC Allowed in case of Gifts. If an employer makes any gifts to its employee up to Rs.50,000/- (Per Employee) during the year, then no GST Is charged in that case. If its amount is in Excess of Rs.50000/-, it is considered as Supply and GST has to charge on that Gift Value and can take input of Gifts items on which GST is Paid