ITC on business promotion and Diwali Gift to Employees.
Dear All
One of My company doing camera rental Business.They give mobile and gift to cameraman and their assistants as a business promotions.can i take ITC of GST on the same.
Also we are gifting in diwali to our employees. Can we take GST ITC on the same. (diwali gift to Employees).
Camera Rental Firm Can't Claim ITC on Free Gifts; Business Gifts Taxable Per Schedule I, Para 2 Under GST. A company involved in camera rental services inquired about the eligibility to claim Input Tax Credit (ITC) under GST for mobile phones and gifts given to cameramen and their assistants as business promotions, as well as Diwali gifts to employees. Respondents clarified that ITC cannot be claimed on free gifts as they are considered exempt supplies under the CGST Act. For business-related gifts, GST is applicable as per Schedule I, Para 2. Proportionate reversal of ITC is required for free gifts, and specific provisions apply to employee gifts. (AI Summary)
Goods and Services Tax - GST
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