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Itc on mobile gift

11 October 2019

hello
i deal in pharmaceutical business, i want to gift a mobile phone to my cosutomer can i claim itc gst paid on mobile

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7 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14165 Points)
Replied 11 October 2019

As per section 17(5) (h) of the CGST act 2017 and Circular 92 / 2019 dt 7/3/2019 Clause ( A) (ii) by CBIC you can not Claim Input TAX credit on Gifts to Customers .

Confirm with others also .

mhatre p (2 Points)
Replied 11 October 2019

Don't send or display ad

aman goyal (125 Points)
Replied 11 October 2019

Ok sir, but many of people claim input

prasad Nilugal ( GST Practitioner & Accounts ) (14165 Points)
Replied 11 October 2019

I think you have reverse ITC with interest . please confirm with others also.

VIKAS SAINI (1157 Points)
Replied 11 October 2019

This is fall under block credit.

Shivam RC (Student) (23683 Points)
Replied 12 October 2019

No Sir...

You cannot claim ITC on Mobile Phone as it is disposed off by way of "GIFT". As per the Provision of Section 17(5) clause (h) of the CGST Act 2017, ITC is BLOCKED on goods distributed as Free Samples, Gifts etc.

Hence you cannot claim ITC. If you have claimed ITC, then Reverse that portion of ITC with applicable Interest.

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