No ITC on gifts or rewards given without consideration

In re GRB Dairy Foods Pvt. Ltd (GST AAAR Tamilnadu)

As per the provisions of the CGST Act/TNGST Act 2017 more precisely, Section 17(5) of the Act, the gifts or rewards given without consideration even though they were given for sales promotion do not qualify as inputs for the purposes of Credit, since no GST is paid on its disposal. Therefore, we hold that the input tax credit on the inputs and input services involved in the goods and services used for the purpose of reward is not available for the appellant and accordingly the ruling given by the Advan

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