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TMI BlogGIFT UNDER SALE SCHEMEX X X X Extracts X X X X X X X X Extracts X X X X ..... GIFT UNDER SALE SCHEME X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 6 Lakhs) and award a Two Wheeler as a Prize to the lucky winner among the eligible dealers. Would we able to book ITC on The GST paid on the TWO WHEELER Price..given as a gift to the dealer who has bought the fixed amount of goods within the stipulated period of time.Please note that this gift is directly related to the invoiced amount of goods. Reply By KASTURI SETHI: The Reply: Dear Queris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, Answer is , 'NO'. In terms of Sec. 17(5)(h) of CGST Act, you are not entitled to input tax credit of goods which are disposed of as gifts by way of promotional scheme or otherwise. Law is very much clear on this issue Sec. 17(5) : Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of Section 18, input tax credit shall not be available in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the following, namely :- (h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; Thus in view of above definition it is opined that Input tax credit attributable to purchase of promotional items is not available. Pl. read the legal definition of 'gift' and how it is applicable under GST Acts. Reply By mohan sehgal: The Reply: The gift is being g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven against an agreement on record... As far as I understand if an obligation attached to an agreement of sale is attached...the commodity loses its identity as a "GIFT" and no denial of ITC can arise under section 17(5) in such cases. The dealer is entitled to the commodity described as a GIFT,only when achieves the sale target within the stipulated period.. Sir,Please elaborate.THA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NKS Reply By KASTURI SETHI: The Reply: If it is so, it has to be examined afresh in view of your views. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: No. You yourself admitted it is a gift. It is not an obligation of future contingencies. Reply By KASTURI SETHI: The Reply: Dear Querist, Change your strategy to get legal benefit as per law. The word, 'gift' here cannot be digested. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hope you understand what I want to say. Reply By mohan sehgal: The Reply: Thanks... If we change the title of the scheme to" Sales Incentive Scheme" ?????? Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: In your agreement grant of incentive/discount is to be mentioned. The same should be indicated in the invoice. Then it is exempted. Reply By KASTURI SETHI: The Reply: After agreeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt with the views of Dr.Govindarajan, Sir, I am of the view that the following AAR may help you in understanding incentive scheme:-
2018 (15) G.S.T.L. 455 (A.A.R. - GST) = 2018 (7) TMI 1761 - AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA IN RE : ULTRATECH CEMENT LTD. X X X X Extracts X X X X X X X X Extracts X X X X
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