GST on Business promotion and development expensess

[Guest]

I am a distributor of Bathroom fittings. this month I organised a dealers meet. I incurred some expenses on purchases of gift items, booked conference hall and lunch, etc.

Can I avail Input Credit on these bills

[YAGAY andSUN]

Input Tax Credit on food expenses may not be eligible u/s 17(5).
 

[Alkesh Jani]

Sir,

I agree with the reply given by our experts and in addition, I would say that ITC taken on gift is required to be reversed.

Thanks

[Ganeshan Kalyani]

Input tax credit on conference is also a matter of discussion. If you have held conference in the state where you have GSTIN then credit is eligible. But if conducted in a State where you are not registered then the tax paid is an expense to you .

Yes as opined by my colleague experts input tax credit on lunch and gift item is not eligible for credit. thanks.

[Ganeshan Kalyani]

Do not take credit at first and there is no need for reversal of input tax credit obviously.

[PAWAN KUMAR]

As per my view, goods or services disposed off as free gift is under exclusion clause 17(5)(h), therefore not eligible for Input tax credit. Food items are also not claimable.

Now about the gst on conf.hall booking, the place of supply will be location where conf. is held. Since place of supply and location of supplier is in same state, It will be intra-state and will be leviable to CGST+SGST. In such circumstances if recipient is registered in the same state of supplier, Input tax credit is available, otherwise it will cost.

[Ganeshan Kalyani]

Yes rightly explained by Sri Pawan Sir.

[YAGAY andSUN]

We do endorse the views of our experts.

AI Summary

Distributor Seeks Clarity on Input Tax Credit for Dealer Meet Expenses under GST, Section 17(5) Exclusions Apply A distributor of bathroom fittings organized a dealers' meet and inquired about the eligibility for Input Tax Credit (ITC) on expenses such as gifts, conference hall bookings, and lunch under the Goods and Services Tax (GST) framework. Experts responded that ITC on food and gifts is generally not eligible due to exclusion clauses, specifically section 17(5). ITC on conference expenses is contingent on the registration status in the state where the conference is held. If the conference is held in the state where the distributor is registered, ITC is available; otherwise, it is considered an expense.