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TMI BlogITC AvailabilityX X X X Extracts X X X X X X X X Extracts X X X X ..... It is common that a business entity distributes to dealers and well-wishers calendars and diaries in the New Year. Such calendars are specially made with details of products traded / manufactured by the entity printed on the same. Though calendars are technically gifted , calendars etc attract many eyeballs and many others also become aware of the company s products. In the above circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , are we right in claiming ITC on specially bought out calendars etc which are distributed free of cost. - Reply By KASTURI SETHI - The Reply = Sh. Ethirajan Parthasarathy Ji, You are NOT on right track. Not litigation free. You are well aware of the decisions of AARs in favour of the department. There are case laws (including Supreme Court ) pertaining to pre-GST era which disallow such c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit. In my view, such availment of ITC is also hit by Section 17(5) (g) of CGST Act . Moreover, such availment of ITC does not conform to even the basic conditions laid down in Section 16 of CGST Act . - Reply By KASTURI SETHI - The Reply = 2021 (10) TMI 1117 - AUTHORITY FOR ADVANCE RULING, TAMILNADU - IN RE : GRB DAIRY FOODS PVT. LTD. - Reply By KASTURI SETHI - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Reply = 2021 (4) TMI 839 - APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA - IN RE : PAGE INDUSTRIES LTD. - Reply By KASTURI SETHI - The Reply = In order to avail ITC , output tax payment is an absolutely must. 2019 (6) TMI 1305 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA - IN RE : SANOFI INDIA LIMITED - Reply By GUNASEKARAN K - The Reply = Goods disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of Gift or Free Samples either in the name of Business Promotion or Advertisement Marketing to promote the brand or market products, such goods can be considered as inputs as defined in Section 2(59) of the CGST Act, 2017 . However, the GST paid on the same cannot be availed as input tax credit in view of the provisions of Section 17(2) and Section 17(5)(h) of the CGST Act, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 . - Reply By Padmanathan Kollengode - The Reply = Prima facie it is covered under section 17(5) . However, if the diary/ calender, etc... bear the name and logo of the company or its product etc... and you can successfully establish that these are not gift but rather these are purely promotional/ advertisement materials distributed for brand recognition, then ITC can be availed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Needless to say, it is not free from litigation. - Reply By Ethirajan Parthasarathy - The Reply = Dear Mr.Padmanathan, Yes. Your view is also supported by recent decision of Karnataka AAR in the case of Oriental Cements Limited - 2023 (9) TMI 126 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA. But in the same case, AAR has also given the finding the distribution of such items will be trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as supply . It may further be noted such deemed supply will be applicable irrespective of value of promotional items unlike threshold limit prescribed for freebies given to employees. - ITC Availability - Query Started By: - Ethirajan Parthasarathy Dated:- 22-8-2023 Last Replied Date:- 14-9-2023 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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