Taxability and itc availablity under gst on sales promotion

This query is : Resolved

pawan bansal (Querist)
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23 February 2018 Dear Professional Colleague

We purchased gold coins for sales/business promotion,whether ITC allowed on purchase of the same ? or blocked u/s 17(5) ???

Whether it shall be subjected to GST when given away or disposed of ???

please give your valuable advice.....

CMA Bhavya

CMA Bhavya (Expert)
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23 February 2018 Hi, In my view the Act is silent on ITC on Gold coin by usage of words infurtherence to business, but GST on lost, stolen , destroyed, goods and free samples, disposed by way of gift are not eligible for Input Tax Credit Sec 17(5)(h) of CGST Act. Here its an Act of Gift which is disposed by way of Gift , so not eligible for claiming ITC.