Input tax on new year gifts to customers

Yes we can claim the Input Tax Credit on the same as this gifts and give aways are in the form of Business Promotion Expenses.

No... Input Credit not available if You are give gift or free...

Agree with @ RAJA P M.

One cannot claim ITC on gifts and free goods.

If business assets are sold for free than Input tax credit of GST paid on such assets are denied, however in this case, assessee is procuring items for the purpose of giving them as gift to its customer. Therefore this kind of business expenses are eligible for claiming input tax credit.

It's not business expenses...

section 17(5)h he can not claim credit

I agree with Raja Sir. But my confusion is that, the gift items mentioned here are just purchased for free distribution. Since, they are not trading stocks, they can never be sold on monetary value.

it is very confusion metter
becz 1 side it ture or 2side is wrong

becz gift give for business promotion
so as per gst act sec 16 sub sec 1
1] Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in Section 49, be entitled to take credit of inputtax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.

gift given for furtherance promoted of his business

Originally posted by : pankaj kumar mishra
	it is very confusion metter becz 1 side it ture or 2side is wrong... .....gift given for furtherance promoted of his business

 

Sorry to My Dear All 

We think it's a business related expenses. Okay Right...!!!

 

Just in My mind "Why not we think it's one of the Bribery/Curruption making business growth"

(just it's only my think. Not hurting to anyone).

Its employee benefit / welfare expenses,

not bribe or corruption 

Dear.,

Why You mean "employee benefit / welfare expenses"...??
Are You read the Query...?





In case it's as per Your reply then also ITC not available...

yes read the query, any company cannot give bribe to employees , it works for there well being

Hello.... Where is the word of EMPLOYEE in the 1st Query...? I know employer to employee activities.... Okay....

Thanks all... I have asked the same to our auditor who is a CA and he said as its for the purpose of promoting business, we can take input credit of the same. Thanks a lot