Case Law Details
In re Sanofi India Limited (GST AAAR Maharashtra)
ITC eligible on Shubh Labh Trade Loyalty Program
it is manifest that the Appellant’s act of providing the promotional goods and services under the Shubh Labh Trade Loyalty Program is certainly not an act of generosity, as the Appellant is not giving these goods and services to each and every wholesalers, but only to such participating wholesalers, who have achieved their sales targets and accumulated adequate reward points to fetch such promotional goods and services in terms of the catalogue prescribed by the Appellant. There is presence of the pure commercial intention of the Appellant in the said scheme i.e. to increase their business and sales.
In view of the above discussions, it is clearly established that the provision of the promotional goods and services by the Appellant to the eligible wholesalers under the Shubh Labh Trade Loyalty Program is not gift, as the same does not satisfy the essential ingredients of the gift as envisaged by the above cited Hon’ble Supreme Court Judgment. Accordingly, the provision of the section 17(5)(h) of the CGST Act, 2017, which proposes to disallow the ITC on the goods disposed by way of gift, will not be applicable in the transaction under question.
ITC on Promotional goods e.g. pen, notepad, key chain, etc., embossed with the brand ‘Sanofi’, which are given free of cost by the Appellant to its distributors or doctors as brand reminders Please become a Premium member. If you are already a Premium member, login here to access the full content.
