GST valuation and ITC in case of donation

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CA Final Student
44 Points Posted on 31 May 2021
If company donate assets to hospital, what will be the liability in gst?
That means, if company purchase asset, and after that donate to the hospital, can we avail ITC?
What will be the value for supply?
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On 31 May 2021 at 14:48 Report
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Quick Summary
This discussion clarifies the Goods and Services Tax (GST) implications when a company donates assets to a hospital. It confirms that Input Tax Credit (ITC) cannot be claimed on assets purchased for such donations. Furthermore, the value of the supply is considered zero, and any ITC already claimed on the asset must be reversed, as per Section 17(5) of the GST Act.

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Chartered Accountant
24588 Points Posted on 31 May 2021
No ITC cannot be claimed
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On 31 May 2021 at 15:09
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Chartered Accountant
161 Points Posted on 31 May 2021
ITC in respect of assets purchased for donation shall not be allowed.
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On 31 May 2021 at 15:26
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GST Practitioner
55067 Points Posted on 31 May 2021
As it's being donated hence the value will be Zero & in term of Section 17(5) you are liable to reverse the ITC claim on the same.
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On 31 May 2021 at 22:51
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Chartered Accountant
24588 Points Posted on 01 June 2021
Yes ITC cannot be claimed
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On 01 June 2021 at 21:40
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CA
1258 Points Posted on 07 June 2021

As per section 17(5) ITC cannot be claimed on assets donated to hospital

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On 07 June 2021 at 14:29

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