Held - In the GST regime, the scope of the definition of inputs, capital goods and input services is very wide and covers almost all the imaginable goods and services that are directly or indirectly used in course or furtherance of business. However, Section 17(5) of the CGST/SGST Act, 2017 prescribes a list of goods or services on which ITC is not admissible. 

The bare analysis of the section makes it clear that this section has ov.....

Held - The Appellant has claimed that the gift items have been used in 'Business Promotion' viz. the furtherance of business and credit is admissible in terms of Section 16 of the CGST/SGST Acts.  However, as discussed supra, the ITC is admissible subject to the restrictions provided under Section 17 of the GST Acts. It is observed that sub-Section 17(5), clause (g) clearly forbids ITC admissibility on the items of personal consumption.&n.....

Held - 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.

The applicant itself has submitted that it is distributing these items to its customers and employees by way of presents. Therefore, the applicant is not eligible for credit of input tax against the inward.....

Held - Thus, in light of above findings, goods and services supplied under "Shubh Labh Trade Loyalty Program", are not covered under the definition of supply under section 7 of the GST Act. Now, similarly in respect of the issue whether the 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 can be construed as no.....

Held - It is clearly evident from above that Section 17(5)(h) of CGST Act 2017 does not allow credit on any goods disposed by way of gift or free samples, whether or not in the course or furtherance of business, It is an admitted fact that the applicant herein purchases the items to be disposed as gifts under various incentive schemes to dealers/ painters etc.. Therefore the applicant is not entitled to avail ITC on such items.

Further, .....

Held - The tax payer offers one unit of Agarbatti free on purchase of 1 Carton Box full of Agarbatti. Can credit of the Agarbatti given free of cost be availed as credit by the tax payer?

It’s clear that the credit shall not be available to the applicant (M/s Moksha Agarbatti) in case of question 1 to 3 (mentioned at Sr. no. 14 of the application of the applicant and as reproduced at para 2 (i), (ii) and (iii) above.) as per Section 17.....