Tax Management India. Com
                        Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Articles News
Highlights
D. Forum
What's New
Sub-Menu

Share:      

        Home        
 
Discussions Forum
Home Forum Goods and Services Tax - GST This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

Free Supply of Goods Under GST, Goods and Services Tax - GST

Issue Id: - 116979
Dated: 25-1-2021
By:- nirmal dutta
Free Supply of Goods Under GST

  • Contents

Respected Sir / Madam

We are into business of manufacturing Detergent Powder meant for daily basis use of common people. We frame many promotional schemes to consumer's, retailers, dealers, etc to compete & survive in the market.

Promotional items are given to motivate them on fulfillment of terms of the schemes. The schemes once completed are mostly given in Kinds. We purchase these Schemes items for distribution to our Consumers & Sellers. Also our products are mostly designed with consumers's offer i.e. coupon's mentioning items are inserted in the Detergent packets. Once a consumer buyes & opens a packet they get the coupon & collects the mentioned item from of Sellers.

We want to know that whether we are eligible of Input Tax credit on the purchase of such items.

,

Post Reply

Posts / Replies

Showing Replies 1 to 5 of 5 Records

1 Dated: 26-1-2021
By:- Ganeshan Kalyani

Sir, input tax credit is not allowed on the goods given away for free. You cannot claim input tax credit of the tax paid on purchase of those coupons.


2 Dated: 26-1-2021
By:- KASTURI SETHI

I support the views of Sh.Ganeshan Kalyani Ji. Such availment is not allowed under Section 17(5)(h) of CGST Act.

EXCLUSION CLAUSE

"Section 17(5) (h) : goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and


3 Dated: 26-1-2021
By:- Shilpi Jain

As I understand there are 2 legs to this. One is to dealers under target schemes and the other is for end consumers. There is a possibility of getting credit for dealers related schemes.

Also on a better understanding of the scheme with the consumers, the ITC eligibility can be examined. Please have a look at the article to get some basic understanding on discount and other schemes and the credit eligibility.

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=8992

https://hiregange.com/a/implications-of-various-discount-and-promotion-schemes#


4 Dated: 26-1-2021
By:- KASTURI SETHI

2019 (26) G.S.T.L. 374 (A.A.R. - GST) = 2019 (6) TMI 1305 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IN RE : SANOFI INDIA LIMITED


5 Dated: 7-2-2021
By:- Bhavika Chothani

You cannot claim ITC on free supplies


1

Post Reply

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||