Dear All,
is ITC on gifts given to distributers is available as per GST provisions.
Thank you in advance.
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ITC ON GIFTS UNDER GST
Replies (8)
No , ITC not available on Gifts given as per section 17(5) (h) of the CGST act 2017 .
if they falls under related party definition. even at that time also we can't claim ITC ?
ITC will be allowed in case gift is given to distributors in course of furtherance if business.
A taxpayer shall be eligible to claim input tax credit on the gifts purchased by it and distributed to persons related to business but there shall be no ITC with respect to the eatables purchased for distribution to workers/employees or any gifts distributed to the employees by the employer.
Actually as per section 7 CGST Act the supply includes word "Consideration" & As per definition of Consideration it includes Inducement which means to give person something to person & h
Inducement means to To give person something to do something in Return & Gift as per section 2(xii) Gift Tax Act , gift is gratuity & act of generosity so does not involve any consideration.
Hence if such gift given to distributor to boost the sale shall not be reversed u/s 17(5)
Inducement means to To give person something to do something in Return & Gift as per section 2(xii) Gift Tax Act , gift is gratuity & act of generosity so does not involve any consideration.
Hence if such gift given to distributor to boost the sale shall not be reversed u/s 17(5)
good explanation sir ji
So gifts given to dealer on achieving sales targets is allowed under GST!
please clarify
please clarify
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