AAR: Disallows ITC on free gifts/trips distributed to dealers

Karnataka AAR holds that the applicant, a paint dealer, is not eligible to avail ITC on the inward supplies of goods and services which are attributable to the incentives provided in the form of gifts of goods and services; Section 17(5)(h) of the CGST Act, 2017 does not allow credit on any goods disposed by way of gift or free samples, whether or not in the course or furtherance of business, opines AAR; Further, free travel services provided are without consideration, hence,...