ITC on promotional expenses

[Ashish Diwedi]

Whether GST is applicable on Gold coins / Watches given to business associates as a promotional expense during Diwali?

Can ITC be claimed of GST charged on Gold Coins / Watches?

AI Summary

Exploring GST and ITC eligibility for Diwali gold coins and watches given as promotional business expenses under Section 15. A discussion on the applicability of GST and the eligibility for Input Tax Credit (ITC) on gold coins and watches given as promotional expenses to business associates during Diwali. One participant suggests that ITC can be claimed if the items are not gifts but obligations. Another participant confirms GST is payable on such expenses and refers to specific rulings for ITC eligibility. A third participant advises determining if the associates are related persons under Section 15, affecting GST and ITC applicability, noting that free gifts without consideration do not attract GST or ITC.