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ITC ON GIFTS UNDER GST

ITC / Input 344 views 8 replies

satish Motipalli

Student CA Final

119 Points Joined February 2014

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 Joined December 2017

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 Joined February 2014

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

Puja Sharma

433 Points Joined September 2018

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

55062 Points Joined June 2017

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

55062 Points Joined June 2017

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)