Sales promotion schemes under GST clarified: free samples not supply, BOGO treated as bundled supply, discounts valued per GST rules. Free samples and gifts supplied without consideration are not treated as supply for GST and ordinarily disqualify ITC for inputs, input services and capital goods used for them unless the activity is a supply under Schedule I. Buy one get one offers constitute multiple supplies charged at a single price; taxability depends on whether the transaction is a composite or mixed supply and ITC is available for inputs used. Pre agreed discounts that meet statutory conditions may be excluded from value and permit ITC treatment adjustments; secondary post supply commercial discounts issued by credit note do not qualify for exclusion unless statutory conditions are met.
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Provisions expressly mentioned in the judgment/order text.
Sales promotion schemes under GST clarified: free samples not supply, BOGO treated as bundled supply, discounts valued per GST rules.
Free samples and gifts supplied without consideration are not treated as supply for GST and ordinarily disqualify ITC for inputs, input services and capital goods used for them unless the activity is a supply under Schedule I. Buy one get one offers constitute multiple supplies charged at a single price; taxability depends on whether the transaction is a composite or mixed supply and ITC is available for inputs used. Pre agreed discounts that meet statutory conditions may be excluded from value and permit ITC treatment adjustments; secondary post supply commercial discounts issued by credit note do not qualify for exclusion unless statutory conditions are met.
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