Union Budget 2024: Clarity on ITC Eligibility for Sales Promotion Expenses Pivotal
Karan Kakkar, Partner at Grant Thornton Bharat, and Pragya Sharma, Associate Director at Grant Thornton Bharat, emphasize the critical need for reforms to streamline Input Tax Credit (ITC) claims in India’s GST regime. While GST was introduced to simplify India’s tax system and ensure a seamless flow of ITC, businesses have encountered numerous challenges and inconsistencies, particularly regarding ITC eligibility on sales promotion expenses. The recent GST Council meeting unveiled substantial proposals from Finance Minister Nirmala Sitharaman but industry stakeholders are anticipating additional measures. The Need for Clarity and Consistency In the recent GST Council meeting, Finance Minister Nirmala Sitharaman presented substantial proposals. However, industry stakeholders are still looking for additional measures to address their concerns. With the Union Budget on the horizon, businesses are hopeful for clarity on ITC uncertainties, comprehensive reforms to simplify ITC claims,...