Posted on by abhishek

Whether advertising and communication material (banners/hoardings/posters) provided to distributors would be treated as supply in the course of business by the company thereby not requiring any reversal of ITC

  1.  Where the material is provided free of cost: This would not amount to a supply and hence no tax is payable on such transaction and in such a case credit availed by the company would need to be reversed in accordance with section 17(5) of the CGST Act, 2017.
  2. Where the material is provided for a consideration: This would amount to a normal supply.

(FAQ 1: GEMS AND JEWELLERY )

Comments There is no provision under 17(5) requiring reversal of ITC on supply of free material