INPUT ON MEETING EXPENSES

[DURAISAMY ANANDHAN]

I am a Practicing Chartered Accountant. Al we know that in the year 2017 is GST year. In the year 2017-18, I incurred a sum of Rs. 100000 towards meeting expenses to explain the GST Act to my customers and other Business Persons. Meeting was conducted by Auditors' forum and Other association. I incurred towards supply of 'Biscuits & Confectionery Items ' which fall at 18% GST. In my GSTR, I have claimed this expenses as meeting expenses. Now the GST authority passed an order that this items fall in 17(5) of Foods & Beverages. Hence Input amount should be reversed and pay tax. Kindly help me to file an appeal.

Thanks in advance

AI Summary

Input Tax Credit Reversal Required for Food Expenses Under Section 17(5) GST; Appeal Deemed Unbeneficial A chartered accountant sought advice regarding a GST issue where Rs. 100,000 was spent on meeting expenses, specifically for biscuits and confectionery items, to explain the GST Act to clients. The GST authority ruled these expenses fall under Section 17(5) for food and beverages, requiring reversal of the input tax credit. Respondents in the forum agreed that filing an appeal would not be beneficial, as the input tax credit is blocked for food and beverages unless the output service is in the same business line or obligatory by law.