GST ITC on spondorship

[Madhavan iyengar]

In case of sponsorship fees paid by a manufacturing company to an agency for purpose of sponsor of event related to employee national awards for the rcm paid on sponsorship can credit of rcm be availed by company as eligible credit under gst

AI Summary

Eligibility of Input Tax Credit for Sponsorship Fees Confirmed Under GST Reverse Charge Mechanism for Business Events A manufacturing company inquired about the eligibility of claiming Input Tax Credit (ITC) under the Goods and Services Tax (GST) for sponsorship fees paid for an employee national awards event. Multiple participants in the discussion confirmed that the ITC is eligible under the Reverse Charge Mechanism (RCM) as the sponsorship is considered to be in the course or furtherance of business. The consensus was that sponsoring such events enhances business visibility and employee morale, thereby qualifying for ITC. Participants also noted the broad interpretation of 'in the course of business' in supporting their views.