GST ON SALES PROMOTION

[Deepak Garg]

SIR, ONE OF MY CLIENT PURCHASED CELL PHONES FROM UN REGD.PERSON AND GIFTED ON ACCOUNT OF SALE PROMOTION SCHEME. GST UNDER RCM PAID . WHETHER HE IS ELIGIBLE TO CLAIM ITC PAID UNDER RCM

AI Summary

Client Denied Input Tax Credit on GST Paid for Gifted Phones Under Reverse Charge Mechanism Due to Supply Rules A client purchased cell phones from an unregistered person and gifted them as part of a sales promotion scheme, paying GST under the Reverse Charge Mechanism (RCM). The query is whether the client can claim Input Tax Credit (ITC) for the GST paid under RCM. The consensus among the respondents is that ITC cannot be claimed because the gifts are considered supplies without consideration, which are not subject to GST. This view is supported by multiple participants in the discussion.