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

[Himansu Sekhar]

No, the gift is a supply without consideration. When the supply is not leviable to gst, the credit cannot be availed. Similar is the situation in supply of samples in medicines.

[KASTURI SETHI]

I support the views of Sh.Himanshu Sekhar,an expert.

[DR.MARIAPPAN GOVINDARAJAN]

I also endorse the views of Shri Himansu

[Himansu Sekhar]

Thank you sir

AI Summary

Input tax credit: not available for supplies without consideration under reverse charge when those supplies are not leviable to GST. Supplies of goods gifted for sales promotion are supplies without consideration and not leviable to GST; therefore, input tax credit on tax paid under the reverse charge mechanism for such acquisitions cannot be claimed, analogous to the treatment of free samples.