GST INPUT ON SALE PROMOTION

[Asked by Guest]

If we buy t-shirts, key chains etc. and send this for free distribution along with supply for sale promotion. Can we get the input GST on purchase?

Also distribute some gifts under scheme, Can we use GST input?

[KASTURI SETHI]

If such promotional scheme is without any written contract, ITC will not be admissible as it will amount to gift.

[PAWAN KUMAR]

NO ITC AVAILABLE. SECTION 17 (5)(h)

AI Summary

Input tax credit on promotional freebies not available where items are gifted; such supplies fall outside ITC eligibility.
ITC is not admissible on goods purchased for free distribution in sale promotions or distributed as gifts under schemes when such distributions are without a written contract and amount to gifts; these supplies do not meet the conditions for claiming input tax credit under the GST input rules.