AVAILING GST INPUT OF WRIST WATCH GIFTED TO CUSTOMER

Hey Dinesh!

Regarding GST input credit on a wrist watch gifted to a customer worth ₹50,000:

• Input Tax Credit (ITC) on gifts is generally not allowed if the gift value exceeds ₹5,000 per recipient in a financial year (as per Section 17(5)(h) of the CGST Act).

• Since ₹50,000 is well above ₹5,000, GST input credit on the wrist watch gifted to a customer cannot be claimed.

• Also, gifts given to customers are considered business promotion expenses and GST paid on such goods is usually not eligible for ITC beyond the threshold.

So, in your case, you cannot avail GST input on the wrist watch gifted.