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