https://www.taxtmi.com/caselaws?id=442504 Karnataka AAR ruled that target-based incentive schemes involving gold coins and white goods constitute taxable supply, not gifts. The applicant's obligation to provide goods upon dealers achieving purchase targets creates non-monetary consideration, making it a supply under Section 7(1)(c) of CGST Act and Schedule I entry 1. Since goods are provided conditionally based on target achievement rather than as unconditional gifts, input tax credit claimed on such goods remains admissible under Section 16, with Section 17(5)(h) restrictions not applicable. en-us Thu, 24 Aug 2023 00:00:00 +0530 Sat, 19 Apr 2025 13:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=442504 Karnataka AAR ruled that target-based incentive schemes involving gold coins and white goods constitute taxable supply, not gifts. The applicant's obligation to provide goods upon dealers achieving purchase targets creates non-monetary consideration, making it a supply under Section 7(1)(c) of CGST Act and Schedule I entry 1. Since goods are provided conditionally based on target achievement rather than as unconditional gifts, input tax credit claimed on such goods remains admissible under Section 16, with Section 17(5)(h) restrictions not applicable. Case-Laws GST Thu, 24 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=442504