Complimentary tickets - GST

[Kumar Kedia]

Sir,

Client had issued complimentary tickets to unrelated customers for transportation by aircraft. is GST leviable on the same? What about ITC in respect of the expenses incurred for these tickets?

[Ganeshan Kalyani]

Sir, since there is no consideration on complimentary tickets, GST is not applicable. At the same time the input tax credit is not allowed on the expenses incurred for those tickets.

[KASTURI SETHI]

Dear Querist,

Go through this decision of AAR. This may help you.

2018 (18) G.S.T.L. 278 (A.A.R. - GST) = 2018 (10) TMI 747 - AUTHORITY FOR ADVANCE RULING, PUNJAB IN RE : K.P.H. DREAM CRICKET PRIVATE LIMITED

AI Summary

GST Not Applicable on Complimentary Tickets; Input Tax Credit Not Allowed for Related Expenses. Review Punjab Ruling for Guidance. A client issued complimentary aircraft transportation tickets to unrelated customers and sought clarification on the applicability of GST and input tax credit (ITC) for these tickets. One response indicated that GST is not applicable as there is no consideration for complimentary tickets, and ITC is not allowed for expenses incurred on them. Another response suggested reviewing a decision by the Authority for Advance Ruling in Punjab for further guidance.