ITC on business promotion and Diwali Gift to Employees.

[MODASSIR NAZAR]

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).

AI Summary

Input tax credit on gifts: promotional giveaways may require reversal if treated as exempt or excluded supplies.
Gifts for business promotion may be treated as supply even without consideration and, if they constitute exempt or excluded supplies, ITC cannot be claimed and proportionate reversal of ITC is required; employee gifts are addressed by a specific proviso that limits credit for such distributions.