GIFT UNDER SALE SCHEME
Query (Issue) Started By: – mohan sehgal Dated:- 20-12-2018 Last Reply Date:- 21-12-2018 Goods and Services Tax – GST
Got 8 Replies
GST
We have floated a Quarterly scheme to our dealers ……. On an aggregate purchase of our goods amounting to ₹ 6 lakhs per quarter;we will conduct a lucky draw amongst our dealers ;who are eligible(bought goods worth ₹ 6 Lakhs) and award a Two Wheeler as a Prize to the lucky winner among the eligible dealers.
Would we able to book ITC on The GST paid on the TWO WHEELER Price..given as a gift to the dealer who has bought the fixed amount of goods within the stipulated period of time.Please note that this gift is directly related to the invoiced amount of goods
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39; and how it is applicable under GST Acts.
Reply By mohan sehgal:
The Reply:
The gift is being given against an agreement on record…
As far as I understand if an obligation attached to an agreement of sale is attached…the commodity loses its identity as a "GIFT" and no denial of ITC can arise under section 17(5) in such cases.
The dealer is entitled to the commodity described as a GIFT,only when achieves the sale target within the stipulated period..
Sir,Please elaborate.THANKS
Reply By KASTURI SETHI:
The Reply:
If it is so, it has to be examined afresh in view of your views.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
No. You yourself admitted it is a gift. It is not an obligation of future contingencies.
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