ITC on goods received for business promotion or marketing expenses, Goods and Services Tax - GST

[Naresh G]

A company is into dealership of motor vehicles. They have purchased some gift items worth crores to give to their agents who bring the business to them. The gifts are given on monthly basis to their agents irrespective of the business they bring to them.

Since the outward supply is of vehicles and the inward supply is of some gift items, is ITC eligible in this case? Please help.

Posts / Replies

[Shilpi Jain]

If these articles are given without any obligation (i.e. not mentioned in any document that the dealers would be entitled to these) then credit would not be eligible.