TMI Blogsupply of goods under FOCX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir/Experts. We kindly request you to reply our question. Our Customer wants us to supply some parts under FOC or Free of supply. What is the procedure under gst. Whether we have to charge GST in our invoice or what to do. Please advise. Thanks Regards, S.Ramakrishnan - Reply By KASTURI SETHI - The Reply = From your query, it appears that free supply is in the course or furtherance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of business . Hence It is taxable. Moreover, free supply always creates doubt in the eyes of the department. To be safer pay tax. Also read Section 25. There is provision for free gift up to ₹ 50,000/- with out GST but in your case it is not applicable. It is not gift. I am of the view that it is never free. There may be verbal or written agreement for mutual exchange in some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guise. - Reply By Himansu Sekhar - The Reply = Please give the detail method of transaction. If it is under warranty, no gst is chargeable Otherwise if a free supply with main item also no gst is chargeable. - Reply By vinod pahilwani - The Reply = Kasturiji what would be your reply if its being charge at nominal value say rs. 1. as parties are not related parties transaction value would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered for gst purpose. I guess zero rs. should also be considered as transaction value. - Reply By KASTURI SETHI - The Reply = Actual transaction value should be adhered to. You will not be safe by ₹ 1 or Zero. Nobody gives free goods to anyone. - Reply By Rajagopalan Ranganathan - The Reply = Sir, According to Schedule I of CGST Act, 2017 following ACTIVITIES ARE TO B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION: - 1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets. 2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business: Provided that gifts not exceeding fifty thous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both. 3. Supply of goods- (a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or (b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal. 4. Impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business. According to Section 25 (5) of CGST Act, 2017 Where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen such establishments shall be treated as establishments of distinct persons for the purposes of this Act. Since you are supplying the goods FOC you have to ascertain the value of such supply and pay gst on such supply. - Reply By KASTURI SETHI - The Reply = I endorse the views of Sh. Ranganathan, Sir. Thanks for comprehensive and crystal clear reply. No room for any doubt has been left ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . - supply of goods under FOC - Query Started By: - Ramakrishnan Seshadri Dated:- 20-1-2018 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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