Gst itc credit on sale promotion items.

This query is : Resolved

SEEMA MALHOTRA (Querist)
Follow

15 February 2018 Hello Sir,

if i distributes the gold items for business promotion, can i take credit of GST on its purchase invoice.
please confirm.

seema

AJAY SINGH

AJAY SINGH (Expert)
Follow

15 February 2018 Yes you can take Cenvat of the same, As Per GST Input Tax Credit

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
Follow

15 February 2018 No you cannot take input

Upgrade to CAclubindia Pro. Subscribe Now!

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
Follow

15 February 2018 I m correcting my previous statement. Yes yiu can take

SEEMA MALHOTRA

SEEMA MALHOTRA (Querist)
Follow

15 February 2018 is i have to reverse the credit under any section 16 or 17.

RAJA P M

RAJA P M (Expert)
Follow

15 February 2018 No... You can't avail the benefit of ITC for Gold Purchase...

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
Follow

15 February 2018 HI Raja P M,
Sir, please clarify why we cannot take input.

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
Follow

15 February 2018 HI Raja P M,
Sir, please clarify why we cannot take input.

Upgrade to CAclubindia Pro. Subscribe Now!

RAJA P M

RAJA P M (Expert)
Follow

15 February 2018 Hi Dear.,

Bcoz.,
It's not a Supply...

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
Follow

15 February 2018 Hi Mr Raja
I have some different interpretation for the same. Please correct me if i am wrong.
We can take the all the inputs which is used in furtherance of business. As gold is used for sales promotion it can be said that such expense has resulted into furtherance of business. Therefore it is eligible subject to section 17 (5).
As per 17(5)(h), goods disposed off as a gift cannot be taken as ITC. Here the goods means goods supplied by taxpayer as a taxable supply. Therefore, Gold gifts will not attract 17(5)
For example, Diwali gifts given to customer and creditors
please say what do you think??

RAJA P M

RAJA P M (Expert)
Follow

15 February 2018 Section 17(5) (h) :
(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18,
"INPUT TAX CREDIT SHALL NOT BE AVAILABLE" in respect of the following, namely:—
...........
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples;

So, As per above rule the ITC is not available...

*Also the ITC not available for the Diwali Gifts to Customer or Employee