Credit of GST for Airconditioner given for acheiving Target
Query (Issue) Started By: – JATIN SHAH Dated:- 3-1-2018 Last Reply Date:- 6-1-2018 Goods and Services Tax – GST
Got 7 Replies
GST
We have issued a scheme that if a distributors achieves sale of 10 lacs we will give him Air conditioner. co. is situated at Maharashtra and distributor is in Karnataka. if we buy AC from Karnataka with bill in the name of Company in Maharashtra can we claim credit in GST in Maharashtra.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
According to Section 17 (5) (h) of CGST Act, 2017 "notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in res
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y KASTURI SETHI:
The Reply:
The reply of Sh.Ranganathan, Sir is very much clear. Credit not allowed. This is not discount . It is post sale or post supply incentive. It is out of the definition and scope of discount because such incentive does not conform to the parameters of Section 15 of CGST Act. It cannot be termed as 'prior known'. There is element of uncertainty whether sale target will be achieved or not. Hence neither discount admissible nor ITC is admissible.
Reply By Himansu Sekhar:
The Reply:
First thing, the bill will mention, cgst and sgst of Karnataka, the said credit of cgst and sgst will not be available in Maharashtra.
Second thing, in the case of free samples, FAQ has been released which mentions about reversal
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