Page 177 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : MOKSH AGARBATTI CO. 135
2020 (36) G.S.T.L. 135 (A.A.R. - GST - Guj.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
GUJARAT
S/Shri G.C. Jain and R.B. Mankodi, Members
IN RE : MOKSH AGARBATTI CO.

Ruling Order No. GUJ/GAAR/R/14/2019, dated 23-8-2019 in Application
No. Advance Ruling/SGST & CGST/2018/AR/19
Input Tax Credit (ITC) - One unit of Dhoop offered with a pack of
Agarbatti (consisting of 10 pieces of Agarbatti) - Goods offered by way of gift
not eligible for Input Tax Credit (ITC) as per Section 17(5)(h) of Central Goods
and Services Tax Act, 2017 - ITC not available in respect of inputs used for
manufacture of Dhoop or purchase of dhoop from a third party vendor. [paras
4.1, 5]
Input Tax Credit (ITC) - Target based monetary and non-monetary in-
centives like say Pressure Cooker on purchase of 1,00,000 Agarbatti Packets,
offered to distributors as part of the Sales Promotion campaign - ITC not
available in respect of goods offered by way of gift - Section 17(5)(h) of Central
Goods and Services Tax Act, 2017. [paras 4.1, 5]
Input Tax Credit (ITC) - One unit of Agarbatti offered free on purchase
of 1 Carton Box full of Agarbatti - ITC not available in respect of goods offered
by way of gift - Section 17(5)(h) of Central Goods and Services Tax Act, 2017.
[paras 4.1, 5]
Input Tax Credit (ITC) - Motor vehicle purchased for transport of
Director and Employees - ITC not available in respect of insurance and
maintenance of these motor vehicles as per Section 17(5)(a) of Central Goods
and Services Tax Act, 2017. [paras 4.2, 5]
Ruling in favour of department
REPRESENTED BY : Shri Rubbal Bhanderi, CA, for the Assessee.
[Order]. - Ruling Order No. GUJ/GAAR/R/14/2019 (in Application No.
Advance Ruling/SGST & CGST/2018/AR/19).
2. The applicant has submitted following Questions for which advance
ruling is required :
(i) The taxpayer offers one unit of Dhoop with a pack of Agarbatti
(consisting of 10 pieces of Agarbatti). Can the taxpayer claim credit
of taxes paid on
(a) Inputs used for manufacture of Dhoop?
(b) Purchase of dhoop from a third party vendor?
(ii) As part of the Sales Promotion campaign, the taxpayer offers their
distributors target based monetary and non-monetary incentives.
Can they avail credit on the non-monetary incentives like say Pres-
sure Cooker on purchase of 1,00,000 Agarbatti Packets? Can this
qualify as supply of goods to the distributor?
(iii) The taxpayer offers one unit of Agarbatti free on purchase of 1 Car-
ton Box full of Agarbatti. Can credit of the Agarbatti given free of
cost be availed as credit by the taxpayer?
GST LAW TIMES  7th May 2020  177