No advance ruling on eligibility of ITC w.r.t promotional schemes due to Member’s divergent opinion

Last updated: 27 January 2021

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The Maharashtra Appellate Authority for Advance Ruling (AAAR) could not issue a definitive ruling on whether Sanofi India Ltd. could claim Input Tax Credit (ITC) for goods and services used in promotional schemes and as brand reminders. This was because the two members of the AAAR had differing opinions: one upheld the original ruling denying ITC, while the other favoured Sanofi, setting aside the original ruling. Consequently, under Section 101(3) of the CGST Act, no advance ruling could be given.

Court :
Maharashtra AAR

Brief :
The Hon'ble A AAR, Maharashtra in M/s. Sanofi India Ltd. (Order No. MAH/AAAR/SS-RJ/10/2019-20 dated October 22, 2019) has held that as per Section 101(3) of the Central Goods and Services Tax Act, 2017 ("CGST Act") no advance ruling can be issued w.r.t eligibility of input tax credit ("ITC") on the goods and services offered under various promotional schemes and as brand reminders since one member (SGST) has upheld the order of Authority of Advance Ruling ("AAR") and the other member (CGST) has set aside the order of the AAR in the favour of Appellant.

Citation :
Order No. MAH/AAAR/SS-RJ/10/2019-20 dated October 22, 2019

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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