GST Credit
RAJ MISHRA (ACCOUNTANT) (50 Points)
12 December 2018RAJ MISHRA (ACCOUNTANT) (50 Points)
12 December 2018
Sarath Rajendran
(Nil)
(2791 Points)
Replied 12 December 2018
As per section 16 a taxpayer is entitled to take credit of input tax charged on any supply of goods or services to him which are used in the course or furtherance of his business.
CA AMIT JAKHWAL
(CA in practice at M/s Amit Jakhwal & Associates )
(84 Points)
Replied 12 December 2018
As per Section 16 of CGST Act, 2017 a taxpayer is entitled to take credit of input tax charged on any supply of goods or services to him which are used in the course or furtherance of his business.
Gifts to employees is for furtherance of his business because these gifts are generally given to sustain good business relations for the advancement of business activity.
So, ITC on the gifts to employees is availble.
I hope you get your answer. In case of any clarification feel free to revert.
RAJ MISHRA
(ACCOUNTANT)
(50 Points)
Replied 12 December 2018
CA Nikhil Arora
(Chartered Accountant)
(91 Points)
Replied 12 December 2018
Sec 17(5) i.e. blocked credit which specifically states that there is no credit on the gift and free samples distributed by the registred person.
So there willl be no credit on the gifts.
RAJ MISHRA
(ACCOUNTANT)
(50 Points)
Replied 12 December 2018