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ITC ON GIFTS UNDER GST

438 views 8 replies

satish Motipalli

Student CA Final

119 Points Posted on 18 January 2019

Dear All,

is ITC on gifts given to distributers is available as per GST provisions.

Thank you in advance.

Replies (8)

prasad Nilugal

3924 Points Posted on 18 January 2019

No , ITC not available on Gifts given as per section 17(5) (h) of the CGST act 2017 .

satish Motipalli

Student CA Final

119 Points Posted on 18 January 2019

if they falls under related party definition. even at that time also we can't claim ITC ?

Puja Sharma

433 Points Posted on 18 January 2019

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.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 18 January 2019

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

Pankaj Rawat

GST Practitioner

55067 Points Posted on 18 January 2019

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)