Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Input credit on promotional items

vinay (Trainee CMA) (241 Points)

09 November 2018

We are suppliers of Industrial paints. We gave T Shirts on which name of our company and name of our product are fixed and will give to our clients as business promotion. We purchased it by paying igst. Can we claim input of that?

Reply
Follow
Share

4 Replies

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 09 November 2018

No... You can't claim ITC for that.

srikumar (audit staff) (1203 Points)
Replied 09 November 2018

y itc can't claim sir, explain

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 09 November 2018

@ Mr Srikumar.,

See Your reply in this link...

https://www.caclubindia.com/forum/itc-on-vehicle-purchase-491634.asp

What You said in that link...?!!!

That's not in the Query...

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 09 November 2018

I am of the opinion that items which were meant for supply for consideration but were given without any consideration fall under 17(5)... like items donated, or items given as gift to employees or consumed by the proprietor etc
But were the purpose of the goods was for distribution only, ITC should not be reversed
Promotinal Items , Brand development expenses are a primary business expenditure in present day scenario