ITC CLAIM OR NOT

[PRADEEP SHUKLA]

Dear Sir/Madam,

We would like to know that we have purchased some items for Diwali to our company employees and we have done payment by Bank. The suppliers has issued us IGST invoice against that items. So we want to know that can we claim ITC for the same or not ???

Please help us we are confuse for the same to take or not.

With Best Regards

Pradeep Shukla

[Prudhvi Jakkula]

No. Credit in respect of above purchases cannot be claimed as per Section 17(5)(h).

As per this clause, credit on goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples cannot be taken.

[Atul Rathod]

Cannot take in terms of 17(5)

[KASTURI SETHI]

I agree with the views of both experts.

[Ganeshan Kalyani]

The credit is blocked by section 17(5) and therefore you cannot claim GST credit.

[Adarsh Sharma]

Since it is not in furtherance of business, ITC not available as per Sec 17(5)..

AI Summary

Input tax credit blocked: gifts to employees disqualify ITC under Section 17(5)(h) as not in furtherance of business. The statutory rule bars input tax credit where goods are disposed of by way of gift or free samples and are not in furtherance of business; consequently credit on items purchased and given to employees as gifts, despite IGST invoicing, is blocked under Section 17(5)(h) and cannot be claimed.