GST ON BRAND PROMOTION, Goods and Services Tax - GST

[SAJAN KUMAR]

We Purchase the Bag , pen and Copy with sticker of xyz (Brand) and distribute to our customer for increase our sales volume. We booked the expense in our book as a sales promotion and take the ITC, So as per you we are libel for take itc or not please give the advice

Mahadev

Posts / Replies

[KASTURI SETHI]

In my view, ITC is not admissible as it falls under the definition of 'gift' without any contract/agreement. It is hit by Section 17(5)(h) of CGST Act. However, you must read the following circular for future plan or otherwise.

Sales Promotion Schemes under GST - Clarification on various doubts

C.B.I. & C. Circular No. 92/11/2019-GST, dated 7-3-2019

[Ganeshan Kalyani]

Sales promotion may include advertisements, where ITC is allowed. But when an item is given away free then it would cover under section 17 and ITC will be disallowed.