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27 June, 2018

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Tax Planning for Not Missing Out On Food & Beverages GST Credit on Corporate Promotional Event

Tax Planning for Not Missing Out of Food & Beverages GST Credit on Corporate Promotional Event
By CA Ankit Gulgulia (Jain)
27th June, 2018
As you are that there are certain expenses that a corporate cannot claim as eligible input under the provisions of Section 17 of CGST Act, 2017. Among many one of them is the food and beverage expense that the corporate may incur on some promotional event. 
Now the Law is,

As per Section 17(5)(b)(i), the credit of the following shall not be allowed.

Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply
How to Plan this Effectively?


One Simple Alternate Arrangement can help you, Ask you Event Manager to provide you catering with food. Your Event Manager will be able to take credit and you will also be able to take credit as the event manager will invoice you for one single composite supply of event management. Hence the loss of credit can be Avoided.

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