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TMI Blog2019 (4) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivity. In order to ascertain the impact of GST on such goods supplied on free of cost, the applicant required advance ruling on the following: i) Determination of GST liability with respect to goods provided free of cost by the Distributors of M/s. PoIy Cab Wires Private Limited to KSEB for reinstating connectivity in flood ridden areas; and admissibility of input tax credit in relation to such goods. ii) Applicability of Sec. 17(5) of CGST Act, 2018 on CSR expenses. The authorized representative was heard. It is stated that Kerala State Electricity Board has requested from the distributors of the applicant to supply electrical goods for the restoration of power supply at flood ridden areas. These materials are supplied by the distri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods lost, stolen, destroyed, written off or disposed by way of gift or free samples. In this case after availing input tax credit, the applicant disposed goods as free supply for CSR activities, Hence, the applicant is liable to reverse the input tax credit already availed. However the petitioner is pointed out that with regard to billing of free of cost materials, distributors issued tax invoices showing sale value, GST and total amount with 100% discount and pay the GST liability to Government In such scenario, input tax credit can be availed only if, the output tax liability towards the outward supply was remitted to the Government. The applicant instructed its distributors to provide the goods at free of cost to Kerala State Electricity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the purpose of tax and value was shown as discount. In this supply, since the consideration is not wholly in money, Rule 27 of the CGST/KSGST Rules would apply for valuation. After the goods ale supplied to Kerala State Electricity Board, distributor would raise claim to the applicant who will reimburse the value to the distributor. This being the case, the distributor would be entitled for input tax credit on the goods supplied to Kerala State Electricity Board on instruction from the applicant. ii) Applicability of Sec.17(5) of CGST Act, 2018 on CSR expenses. The applicant distributed electrical items like, switches, fan, cables etc. to flood affected people under CSR expenses on free basis without collecting any money. For the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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