ITC on business promotion event

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..... ITC on business promotion event
Query (Issue) Started By: - Soham Patil Dated:- 7-2-2025 Last Reply Date:- 12-2-2025 Goods and Services Tax - GST
Got 3 Replies
GST
Had a doubt regarding availing ITC in the following cases. Would really appreciate if someone could guide me through. 1) I have hired a event management company to organize an event for business promotion where my clients .....

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..... and employees will be the attendees. Food will also be provided in the event to the attendees. The event management company charged me a lumpsum amount in the invoice for organizing the event ( no bifurcation) . Can I claim the ITC on the same? 2) What would be the scenario if the invoice showed separately the amount charged for banquet, food , decoration,etc. Would I be eligible for claiming th .....

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..... e ITC? 3) In both the cases above, if I avail the services through a hotel (not through an event management company) what will be the scenario. Will I be eligible to claim ITC? Reply By VENU K: The Reply: The event management company must have billed you as a composite supply of event management service. In my opinion you can claim credit if otherwise eligible as per ITC restrictions. Sec 17( .....

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..... 5)(b)(i) blocks credit on food and beverages, outdoor catering etc . So in my opinion Scenario 2 and 3 will block your credit relating to food, beverages, outdoor catering etc. Reply By Shilpi Jain: The Reply: First scenario eligible. Other scenarios, the HSN code mentioned in the expense invoice is critical to comment on the eligibility. Reply By Shilpi Jain: The Reply: If its a composite su .....

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..... pply in first scenario, there should be no reason why the same principle should not apply to the other 2 scenarios and credit should be eliigble. But ensure proper HSN is mentioned in the invoice.
Discussion Forum - Knowledge Sharing .....

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