Tuesday, March 18, 2025 | 01:40 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Gujarat HC sends notice to state, Centre over input tax credit on gifts

A petitioner sought declaration of the section 17 (5) (h) of the Central GST Act and associated circular as unconstitutional to the extent that it restricts input tax credit on gifts and free samples.

Tax
Premium

As the confusion arose whether the credit would also be blocked for gifts and free samples, firms, including pharma ones, approached the government for clarification.

Indivjal Dhasmana
The Gujarat High Court has issued notices to the Centre, state government, GST Council, and indirect tax board in a case related to denial of input tax credit on gifts or free samples given by companies.

A petitioner sought declaration of the section 17 (5) (h) of the Central GST Act and associated circular as unconstitutional to the extent that it restricts input tax credit on gifts and free samples.  The section provides a list of items where input tax credit cannot be given such as rent a cab. However, the section does not  mention gifts and samples.  

As the

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in