Applicant, engaged in business of developing, manufacturing and distributing crop protection chemicals and hybrid seeds, have a contractual agreement as per which if distributor purchases certain amount of company’s product or makes payment in a prescribed manner, then he shall be entitled to a gold coin of specific weight.
since distribution of gold coins by applicant is nothing but gifts, transaction is covered by provisions of section 17(5) and Input Tax Credit (ITC) cannot be claimed by applicant on procurement of Gold coins as ITC on ‘gifts’ will not be available when no GST is being paid on their disposal
AUTHORITY FOR ADVANCE RULINGS, MAHARASHTRA
Biostadt India Ltd., In re
B. TIMOTHY AND B.V. BORHADE, MEMBER
ORDER NO. GST-ARA-72/2018-19/B-165
DECEMBER 20, 2018
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