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ITC claim -reg

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Maya

Student

663 Points Posted on 22 October 2020

Dear frds/ experts,

If a company issues a silver gift worth abt Rs.10,000/- to their staff, Do they eligible to claim that gift's ITC??

Replies (5)

Quick Summary

This discussion clarifies whether companies can claim Input Tax Credit (ITC) on gifts provided to their staff. According to Section 17(5)(h) of the CGST Act 2017, ITC is blocked on goods distributed as gifts or free samples. Therefore, a company cannot claim ITC on the GST component of a silver gift worth approximately £10,000 given to employees, nor on silver articles purchased for the office.

rahul

1620 Points Posted on 22 October 2020

Not eligible

Shivam RC

Student

23693 Points Posted on 22 October 2020

As per the Provision of Section 17(5) clause (h) of the CGST Act 2017, Input Tax Credit ( ITC ) is specifically BLOCKED on Goods distributed as "Gifts" or Free Samples.

So the Company is not eligible to claim the ITC on GST component of Rs. 10,000 Silver Gift given to their staffs.