CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Eligibility of ITC Diwali gifts..


Nrusingh Beura   22 May 2020

Nrusingh Beura

 1 likes  50 points

| My Other Post

Dear member, we purchase dryfruits packet and distribute it to our customers during diwali as a business promotion expense, is it ineligible as per sec 17(5). please suggest..

avater

Asha Kanta Sharma (Manager - Finance & Accounts)     22 May 2020

Asha Kanta Sharma
Manager - Finance & Accounts 
 83 likes  3653 points

View Profile | My Other Post

ITC not admissible on procurement of Gifts. ITC not available on gifts' when no GST is being paid on their disposal, section 17(5) of the CGST Act, 2017 blocks such credits: AAR

avater

Nrusingh Beura   22 May 2020

Nrusingh Beura

 1 likes  50 points

View Profile | My Other Post

Sir, Supplier also charge gst and we have tax invoice with gst breakup

avater

jashwanth (vijayawada)     22 May 2020

jashwanth
vijayawada 
 55 likes  398 points

View Profile | My Other Post

We can't claim input when the goods are distributed as sample , gift, damage as per 17(5)

1 Like
avater

Pankaj Rawat (GST Practitioner)     23 May 2020

Pankaj Rawat
GST Practitioner 
 3342 likes  45117 points

View Profile | My Other Post

A conjoint reading of Section 17(5)(h) of CGST Act, 2017 and Schedule I to CGST Act if the goods are disposed of by way of gift, section 17(5)(h) of
CGST Act, 2017 shall be applicable and accordingly input tax credit in respect of the same shall not be allowed

Roma jain   23 May 2020

Roma jain

 1 likes  7 points

View Profile | My Other Post

As per section 17 (5) we can't claim input tax when we are distributed gift.

1 Like
avater

Asha Kanta Sharma (Manager - Finance & Accounts)     23 May 2020

Asha Kanta Sharma
Manager - Finance & Accounts 
 83 likes  3653 points

View Profile | My Other Post

The main concept is if you are not paying tax on its disposal then ITC is not allowed be it like, Free Samples, Gifts, Loss of Goods, Fire, Theft etc

Rajkumar Patel   23 May 2020

Rajkumar Patel

 14 likes  248 points

View Profile | My Other Post

If your gift amount More than 50,000 Rs per employee per annum, GST is levied on such supply Without any Consideration under schedule 1 and Paid gst on inward supply of such good can also not be claimed.

avater

Shivam RC (Student)     25 May 2020

Shivam RC
Student 
 2112 likes  16855 points

View Profile | My Other Post

ITC on Gifts is specifically BLOCKED under Section 17(5) clause (h) of the CGST Act 2017.

2 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Popular Discussion


view more »



Trending Tags
newgstreturn
ca exams may 2020
epfo
Service Tax
cbdt
dvat
Others
Info Technology
itr
coronavirus
gst
cag
accounts
gstr 9
companies act 2013
sebi
dgft
rbi
ca rankholder interview
Union Budget
tds