Q. 364 Can we take GST input on insurance taken for Directors and Officers liability ?

Ans. In terms of section 17(5), input tax credit on insurance service can be claimed when it is mandatory for the employer to take such services on behalf of employees under any law. In the above case, if the above services provided by you are not obligatory then you are not eligible to claim ITC. 

Q. 363 Cheques received from Principal /supplier as gifts and credited to the profit and loss account of the agent as revenue income whether taxable under GST ?

Ans. Under GST Act, supply of goods or services is the taxable event For the purposes of this Act, the expression “supply” includes–all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; In the above case, we are made to understand there is no supply for a consideration in the course or furtherance of business, the gift will not be considered as supply. Hence, no GST to be levied.

Q. 362 Client is engaged in the work of Constrcution on tender allottment by state government, local authority, municipality, Public Works Department. Now, client uses gravel as a material for construction and makes payment to the crusher alongwith GST, can he claim ITC on such material (gravel, stones, pebbles) ?

Ans. In the above case, the taxpayer is entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. However, if the above goods or services are used for personal consumption then input tax credit shall not be available.