ITC not eligible on incentives provided as gifts of goods & services

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 / lo...