Gst input on diwali expenses

These supplies are treated as free supplies and also under reverse charge. Since these supplies are under reverse charge therefore no ITC is allowed

Yes... 
You can take input ITC for the Taxable Invoices... 
From URD purchase (if purchased on September) you don't want pay tax under RCM basis for issued to Staffs. But, you want pay tax under RCM basis to clients compliments....

Q1: If in invoice, GST is included - Whether can we take input of GST?

>> ITC for items issued as free supplies needs to be reversed. Hence, even if the invoice shows GST, you will not be able to take credit of the same.

 

Q 2. If in invoice, GST is not included - Whether we are under obligation to pay under RCM? If yes, can we take input?

>> If the Items are purchased from Composition dealer, then you need not pay tax under RCM. If the items are purchased from an unregistered dealer, liability to pay GST on reverse charge arises.

Additionally, if gifts below Rs 50,000 per employee per annum are given, then no need to reverse the ITC paid on RCM. However, for free supplies to clients, ITC needs to be reversed.

 

@ CA_Suhani.,

You are wrote above 2 question. But, 2 questions are different ways. Also both ans and it's Taxability is collapsing....

your said way.,
1. If taxable invoice no need take ITC.....!!?
2. If URD bill you ll be pay Tax under RCM basis...

Both are not meaningful...

explain yourself please...