ITC on distribution

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.

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

Agree with bhavika

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