hi
purchase Diwali gift with gst amt ...whether this gst can be claimed as itc or is there limit for this .
Hi rani,
First we will check that gift given to employee by an employer is within ambit of scope of supply or not. there are two cases
1. if gift given by employer to employee exceeds rs 50000 in a FY - then it will be treated as supply of goods as per schedule I of CGST ACT 2017 as it comes under scope of supply mentioned under Sec 7(2) of Act, hence chargable to gst of fair market value i.e. in invoce in your output tax liabilty even if gift is given without consideration . And you will be allowed to take credit. this will nullify the tax payment and credit availed.
2. When gift given are less than 50000 in FY - it is neither a supply of goods nor service. hence as per defination of exempt supply hence credit exclusively used in exempt or non gst or no gst supply cannot be availed.
CAclubindia
