Case Law Details
In re M/s Surfa Coats (India) Pvt. Ltd. (GST AAR Karnataka)
Whether the applicant is eligible to claim the GST Input tax credit on the items purchased for furtherance of business?
we draw attention to the Circular No.92/11/2019-GST dated 07.03.2019, issued by the CBIC, wherein, at Para (A)(ii), it is carified that “input tax- credit shall not be available to the supplier on the inputs, input services and capital goods to the extent they are used in relation to the gifts or free samples distributed without any consideration” In the instant case the applicant offers free foreign / local trips, as incentives, to the dealers / painters etc., without any consideration. Therefore the input tax credit on the services procured (input services), for offering aforesaid services of free trips, is not available to the applicant.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING KARNATAKA
ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS & SERVICES TAX ACT, 2017 AND UNDER 98(4) OF THE KARNATAKA GOODS & SERVICES TAX ACT, 2017
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