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GST credit on Business Promotion

Ashish ( ) (39 Points)

12 October 2017

Hi,

One of our client made some purchases from Lifestyle to be distributed as a Gift, But lifestlye store don't have provison to enter GSTIN of customer.
How to claim GST credit in that case??

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10 Replies

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 12 October 2017

you can't claim ITC I think

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Dr. ShamsheerKhan (Director of S S Associates) (968 Points)
Replied 12 October 2017

You make pressure on LIFESTYLE to issue a tax invoice on your GSTIN. There is no provision to reject by lifestyle.

Dr. ShamsheerKhan (Director of S S Associates) (968 Points)
Replied 12 October 2017

Once you get tax invoice on your GSTIN. Claim it in your return and get ITC.
THE GIFTS DISTRIBUTED SHOULD BE FOR THE SAKE OF BUSINESS PROMOTION.

acasaurabharora@gmail.com (36 Points)
Replied 13 October 2017

distribution of gift is a blocked credit under section 17(5).

Dr. ShamsheerKhan (Director of S S Associates) (968 Points)
Replied 13 October 2017

But a tax payer can show it under advertisement head and get ITC

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Ashish ( ) (39 Points)
Replied 13 October 2017

Thanks a lot sir

acasaurabharora@gmail.com (36 Points)
Replied 13 October 2017

You will not get the credit merely by changing the accounting head. The nature of the transaction will not change by merely booking an expense in other accounting head. Section 17(5) has nothing to do with the

acasaurabharora@gmail.com (36 Points)
Replied 13 October 2017

accounting treatment.

Md Hakim (Assistant Manager) (64 Points)
Replied 13 October 2017

Hi, you can get better information about Input tax credit here: GST Input Tax Credit

Sir Iyerji (Online marketing) (61 Points)
Replied 15 October 2017

Retailers (Lifestyle ) whether online or offline have to register buyer as a B2B buyer with GSTIN in their system & not issue a usual B2C (Business to consumer) invoice. most of them dont change after initial actual sale/invoice issue as their retail invoicing systems are automated ..you will have tough time to make Lifestyle reissue a fresh GST invoice with your GSTIN no & more importantly they should report GST collected in the portal...if they do it will appear in your records..