the books of a distributor supplied at free of cost at the end of the year.
can input be claimed to that extent?
is so,what is the accounting treatment of such supply in books?
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Accounting treatment.
Replies (4)
No as per section 17(5) of CGST Act you cannot take ITC on supply made as free distributed, sample, gifts, destroy, stolen etc.
Thank you sir
It is blocked credits under section 17(5) of the GST Act
No @ Manasa Alleni. You cannot claim ITC.
As per the Provision of Section 17(5)(h) of the CGST Act 2017, ITC on Goods lost, Stolen, Destroyed, written off or given off as gift or free samples is specifically BLOCKED.
Hence you cannot claim ITC.
As per the Provision of Section 17(5)(h) of the CGST Act 2017, ITC on Goods lost, Stolen, Destroyed, written off or given off as gift or free samples is specifically BLOCKED.
Hence you cannot claim ITC.
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