BUSINESS PROMOTION

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... BUSINESS PROMOTION
Query (Issue) Started By: - VIBHUKUMAR SANGAL Dated:- 8-2-2019 Last Reply Date:- 11-2-2019 Goods and Services Tax - GST
Got 6 Replies
GST
We have given a Party for Business Promotion. This party has organised by a event organiser. In which, they organised food, musician, music & dance. They have given us Bill with GST. Can we take GST Input on the same Bill. Reply .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... By KASTURI SETHI: The Reply: Not allowed. It is an uphill task to prove that party was given in the course of business or furtherance of business (taxable). Under Section 155 of CGST Act, the burden of proof is cast upon the person to the effect that ITC was availed correctly. It will be a hard nut to crack. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: If it is for the furtherance of busines .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s credit can be availed. Reply By Ganeshan Kalyani: The Reply: If the invoice is with the description of service as 'Business Promotion" , then credit is eligible. Reply By KASTURI SETHI: The Reply: Service provider cannot issue invoice with description as "Business promotion". Service provider will mention item - wise and service wise particulars on the invoice . It is a st .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... atutory duty of the person who avails ITC to prove that ITC has been utilised in the course of taxable business or furtherance of business. The possibility of misuse cannot be ruled out. The department is very strict in such matters. It is not risk-free. Reply By Ganeshan Kalyani: The Reply: Sir, event organiser may not raise an invoice separately indicating charges for food, musician, music and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... dance etc. They would be charging a lump amount for arranging party. The head may be "event management charges" or expense toward "promoting business" i.e. business promotion. Reply By Mahadev R: The Reply: It would be subject to litigation for sure if the description contains words such as food, musician, music dance etc. Even the past this has been subject matter of litig .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ation. In GST also one could expect the same. If invoice is for event management services which in turn is for business promotion, ITC should be eligible.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X