ITC on Food Expenses incurred in connection with business promotional activities

[Vishal Soni]

As per section 17(5)(b)(i) of CGST Act, 2017, ITC is no allowable on supply of Food & Beverages etc., however if any business concern incurs expenses for business promotion in form of gift of dry fruits, which are to be distributed to their clients whether ITC will be available in that case?

AI Summary

ITC Not Available for Food and Beverages Given as Gifts in Business Promotions Under CGST Act, Section 17(5)(b)(i). A discussion on a forum addressed whether Input Tax Credit (ITC) is available for expenses on food and beverages given as gifts during business promotional activities under the Goods and Services Tax (GST) framework. The consensus among participants was that, according to Section 17(5)(b)(i) of the Central Goods and Services Tax (CGST) Act, 2017, ITC is not available for items provided as gifts, including dry fruits distributed to clients. Multiple replies confirmed that ITC is specifically disallowed for such expenses as per the Act.