No ITC on Gift of Gold Coins to customer at end of Scheme : AAR

By | March 12, 2019
(Last Updated On: March 12, 2019)

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.

Held

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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