We Purchase the Bag , pen and Copy with sticker of xyz (Brand) and distribute to our customer for increase our sales volume. We booked the expense in our book as a sales promotion and take the ITC, So as per you we are libel for take itc or not please give the advice
Mahadev
Eligibility for Input Tax Credit on Branded Promotional Gifts Denied Under CGST Act Section 17(5)(h) A user inquired about the eligibility for Input Tax Credit (ITC) on expenses for distributing branded items like bags, pens, and copies as part of a sales promotion under the Goods and Services Tax (GST) framework. One respondent, Kasturi Sethi, advised that ITC is not admissible since these items are considered gifts without a contract, referencing Section 17(5)(h) of the CGST Act. Another respondent, Ganeshan Kalyani, noted that while ITC is allowed for advertisements, it is disallowed for free items under Section 17. (AI Summary)
Goods and Services Tax - GST
TaxTMI 
TaxTMI 
TaxTMI 
