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Tax advocates call for input tax credit on promotional schemes

Tax advocates call for input tax credit on promotional schemes

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Tax advocates call for input tax credit on promotional schemes
New Delhi, June 5 (IANS) The All India Tax Advocates' Forum (AITAF) said on Tuesday it has urged the Union Finance Minister to allow assesses to avail input tax credit on sale transactions under promotional schemes like "buy-one-get-one-free" deals.
Under the Central Goods and Services Tax (CGST) Act, input tax credit will not be available for goods given as gifts or free samples.
"Withdrawal of input tax credit under the new GST regime will severely impact the sales and marketing cost of companies which follow the system of free samples or free supply strategy such as buy-one-get-one-free schemes," AITAF President M.K. Gandhi said in a statement here.
The statement noted that prior to the introduction of GST, products given free of cost were not liable to VAT and the assessee was entitled to input tax credit.
"However, in the new GST regime, supply of goods by one person to another without consideration does not enjoy this benefit," Gandhi said.
"This would lead to increased cost of promotion and also pose a challenge as regards the valuation to be adopted for calculating GST on such goods," he added.
--IANS
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(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)

(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)

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