ITC on business promotion and Diwali Gift to Employees.

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..... ITC on business promotion and Diwali Gift to Employees.
Query (Issue) Started By: - MODASSIR NAZAR Dated:- 21-1-2019 Last Reply Date:- 26-1-2019 Goods and Services Tax - GST
Got 7 Replies
GST
Dear All One of My company doing camera rental Business.They give mobile and gift to cameraman and their assistants as a business promotions.can i take ITC of GST on the same. Also we are gift .....

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..... ing in diwali to our employees. Can we take GST ITC on the same. (diwali gift to Employees). Reply By SHARAD ANADA: The Reply: Refer schedule I of CGST Act and Sec 17(5) of CGST Act. SCHEDULE I ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION Reply By KASTURI SETHI: The Reply: After agreement with Sh.Sharad Anada Ji, I would like to add as under:- Fundamental is very m .....

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..... uch clear for availing ITC. ITC cannot cannot be availed if supply of goods or services is fully exempted. Free gift is an exempted supply. In order to be eligible for availing ITC, one must fulfill the condition of using the same in taxable supply. Reply By KASTURI SETHI: The Reply: Proportionate reversal of ITC against free gift is requirement of law. This is in continuation of my reply dated .....

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..... 21.1.2019. Reply By Alkesh Jani: The Reply: Sir, I agree with our Experts, just to add a little to Sh. Sharad Anandji's reply, that as per the first part of the query, the value of gifts for furtherence of business, is liable to GST (Schedule-I Para 2) is applicable. For second part of query, i.e. Diwali gift to employee, Proviso to Schedule-I Para 2 is applicable. Thanks, With regards, Re .....

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..... ply By KASTURI SETHI: The Reply: Sh.Alkesh Jani Ji, You are right. Your role can be termed as "Match (issue) finisher" like M.S.Dhoni. Also being cool like him (Dhoni Cricketer). It has happened many times. It is a fact. Reply By Alkesh Jani: The Reply: Sh. Kasturiji Sir, I thank you, as you have always been a very good guide for all. You word of appericiation really matters a lot to .....

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..... me as well all the visitors of this site. Thanks again, With regards, Reply By Ganeshan Kalyani: The Reply: Input tax credit on mobile, gift given to cameraman and its assistant as per section 17(5) of CGST Act.
Discussion Forum - Knowledge Sharing .....

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