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Block Credit ?

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pooja Kotak

34 Points Posted on 26 February 2023

Dear all,

We are engaged in manufacturing of machine parts, We purchase Raincoats, Staplers, steel bottle etc to gift our Distributors.

I am giving this gift by way of two method

1) I am mentioning this in my invoice but against which putting value 0 along with machine parts bill

2) Making bill of supply for gift

whether GST ITC will be allowed or not in both cases...?

Replies (2)

Quick Summary

This discussion addresses whether businesses can claim Goods and Services Tax (GST) Input Tax Credit (ITC) on items like raincoats, staplers, and steel bottles purchased as gifts for distributors. The consensus is that ITC will not be allowed in either scenario, whether the gifts are included on the machine parts invoice with a zero value or provided via a separate bill of supply, due to blocked credit provisions under Section 17(5) of the CGST Act, 2017.