The goods procured by BMW India and supplied during promotion/marketing events qualify as being used in the course of furtherance of business in terms of CGST Act. The company is ineligible to avail Input Tax Credit for such goods supplied in the marketing events owing to the bar of clause (h) of sub-section (5) of section 17.
Input tax credit— Section 17 of CGST Act— Question on which advance ruling is sought is as follows—
(a) Whether certain customized lifestyle goods procured by BMW India either from a third party local supplier or imported from outside India for supply of goods during promotion/marketing events organized by the Company will qualify as used in the course or furtherance of business in terms of the provisions of the Central Goods and Services Tax Act, 2017 (“CGST ACT”)?
(b) Whether the Company is eligible to avail input tax credit for such goods supplied under the marketing events in terms of the CGST Act, 2017?
Held that— The goods procured by BMW India and supplied during promotion/marketing events qualify as being used in the course of furtherance of business in terms of CGST/ HGST Act, 2017.
The company is ineligible to avail Input Tax Credit for such goods supplied in the marketing events owing to the bar of clause (h) of sub-section (5) of section 17.
The goods procured by BMW India and supplied during promotion/marketing events qualify as being used in the course of furtherance of business in terms of CGST Act. The company is ineligible to avail Input Tax Credit for such goods supplied in the marketing events owing to the bar of clause (h) of sub-section (5) of section 17.
Input tax credit— Section 17 of CGST Act— Question on which advance ruling is sought is as follows—
(a) Whether certain customized lifestyle goods procured by BMW India either from a third party local supplier or imported from outside India for supply of goods during promotion/marketing events organized by the Company will qualify as used in the course or furtherance of business in terms of the provisions of the Central Goods and Services Tax Act, 2017 (“CGST ACT”)?
(b) Whether the Company is eligible to avail input tax credit for such goods supplied under the marketing events in terms of the CGST Act, 2017?
Held that— The goods procured by BMW India and supplied during promotion/marketing events qualify as being used in the course of furtherance of business in terms of CGST/ HGST Act, 2017.
The company is ineligible to avail Input Tax Credit for such goods supplied in the marketing events owing to the bar of clause (h) of sub-section (5) of section 17.