Clarification on various doubts related to treatment of sales promotion schemes under GST.

Sales promotion scheme taxation under GST: classification of freebies, bundled offers and discounts affects valuation and ITC availability.

Free goods and gifts supplied without consideration are not treated as supply under GST except where Schedule I applies, and ITC on related inputs is generally disallowed unless the activity qualifies as supply. Bundled 'buy one get one' offers are treated as multiple supplies with taxability depending on composite or mixed supply classification; ITC is available for inputs used in such offers. Discounts established before or at supply meeting section 15(3) conditions are excluded from value and permit supplier ITC, whereas secondary post-supply discounts do not qualify for exclusion and remain part of the value of supply despite issuance of credit notes.