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

ITC Denied on Diwali Gifts for Employees: Section 17(5) of GST Act Disallows Credit for Gift Expenses A company inquired about claiming Input Tax Credit (ITC) under the Goods and Services Tax (GST) for items purchased as Diwali gifts for employees, paid via bank, with an IGST invoice issued. Five respondents unanimously clarified that ITC cannot be claimed for these purchases due to Section 17(5) of the GST Act, which disallows credit for goods given as gifts or free samples. The consensus was that such expenses are not in furtherance of business and are therefore ineligible for ITC.