Case Law Details
In re Musashi Auto Parts Pvt. Ltd. (AAR GST Haryana)
The purchase and distribution of sweets, dry fruits, coins or silver items for the purpose of business promotion cannot be termed as an activity carried out in the course or furtherance of business by any stretch of imagination. Section 17(5)(h) expressly bars input tax credit in respect of disposal of goods by way of gifts. The provision is reproduced as under:-
Section 17(5) reads:
Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:-
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or fee samples;
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