MUMBAI: The Tamil Nadu bench of the GST Authority for Advance Rulings (AAR) has held that no input tax credit (ITC) would be available to a manufacturer who has purchased goods such as Dubai tickets, gold vouchers and home appliances for rewarding retailers who meet their targets. According to the AAR, the main reason for such a stand is that rewards would be used by the retailers for their personal consumption. During the festive season, to prop up sales, manufacturers not only provide incentives to the end consumer by way of discounts or freebies, but also offer incentives to retailers meeting set targets. In this case, GRB Dairy Foods, a private company engaged in the manufacture and supply of ghee, sweets and other products, sought a ruling on whether goods and services tax (GST) paid on inputs/input services such as a trip to Dubai, gold vouchers, TV sets or air coolers purchased by it to implement the promotional scheme ‘Buy N Fly’ is eligible for ITC. To illustrate, during the promotion period, which ran for three months and applied to sales of ready-to-eat sweets & snacks, masalas, etc, if the retailer met the target, he would be eligible for the relevant reward. The AAR bench factored in a 2018 ruling given by the Maharashtra bench in the case of Biostadt India, where ITC was held to be not available on procurement of gold coins offered under a sales promotion scheme to its customers.