AAR Maharashtra rules out giving input tax credit for gold schemes

The Authority for Advance Ruling (AAR), Maharashtra, has ruled against input tax credit for the gold schemes, offered by companies to its customers to encourage them to meet the business targets.

AAR rulings are state-specific but these have persuasive value to be taken as a precedent.

Biostadt India Ltd, a company engaged in manufacturing and distribution of crop inputs and hybrid seeds, had approached AAR on whether a gold scheme announced by it would allow it to claim input tax credit.

The company had come out with a ‘Kharif Gold Scheme, 2018’ under which it offers 10 gm of gold coin to anyone