ITC on distribution

In one the client they have purchase certain goods and than distributed to local people as a social welfare expense than on those goods gst credit is allowed or it should be expensed to p/l.
Replies (16)
Quick Summary
This discussion clarifies whether Input Tax Credit (ITC) is claimable when goods are purchased and then distributed to local people as a social welfare expense. The consensus is that ITC is generally not available for such distributions, especially if considered free supply under Section 17(5) of the GST Act. These costs should typically be expensed in the Profit and Loss account.

Expensed to P& L. No ITC available on such items.
Expense it as no ITC on such goods can be availed.
No ITC is not available in this case
Itc won't be available in this case. however you can claim it as an expense in p n l
No ITC claim for the expenses only
No.... iTC is block on free supply u/s 17(5)
The information displayed here is wrong.
One is Nature of supplies not yet rated.
Whether gst is applicable or not that is also not certain.
What goods -Exempted /Taxable?
How can you say blocked credit.
Sec 17(5) is applicable in the following cases.
ITC is blocked
No ITC section 17(5)
Nature of goods needs to be mentioned by the query string.
It is blocked

GST credit is not allowed if you distribute the goods as free samples. In this case since no consideration was paid, the seller cannot claim input tax credit ( ITC ) of such inputs

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 November 2026
Article Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
10 November 2026
Direct Tax Manager

CAAQ CONSULTANCY PVT LTD

New Delhi

CA Final

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details