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ITC on promotional expenses, Goods and Services Tax - GST |
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ITC on promotional expenses |
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Whether GST is applicable on Gold coins / Watches given to business associates as a promotional expense during Diwali? Can ITC be claimed of GST charged on Gold Coins / Watches? Posts / Replies Showing Replies 1 to 3 of 3 Records Page: 1
If not in the nature of gifts I.e. if it can shown to be an obligation to give such items, ITC can be claimed. Nothing is free in business.
(i) Yes. GST is payable on such promotional expenses. (ii) Regarding availment of ITC on such promotional expenses, pl. go through the following decisions of AAR :-
1. First decide whether they are related persons or not under sec. 15. 2. If yes, taxable even if no consideration is received and ITC allowed. 3. If not, if a free gift without any consideration, no GST and no ITC allowed Page: 1 Old Query - New Comments are closed. |
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