Input Tax Credit treatment for free samples, BOGO offers and discounts clarified for GST valuation and credit rules. Clarification holds that free samples and gifts supplied without consideration are not supply except as covered by Schedule I and generally attract no Input Tax Credit for the supplier; 'buy one get one free' offers are treated as multiple supplies priced together with ITC allowable for inputs used; invoice-disclosed or pre-agreed discounts may be excluded from value if statutory conditions are met with corresponding ITC adjustments, whereas secondary post-supply discounts via credit notes remain part of value unless statutory criteria are satisfied.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input Tax Credit treatment for free samples, BOGO offers and discounts clarified for GST valuation and credit rules.
Clarification holds that free samples and gifts supplied without consideration are not supply except as covered by Schedule I and generally attract no Input Tax Credit for the supplier; 'buy one get one free' offers are treated as multiple supplies priced together with ITC allowable for inputs used; invoice-disclosed or pre-agreed discounts may be excluded from value if statutory conditions are met with corresponding ITC adjustments, whereas secondary post-supply discounts via credit notes remain part of value unless statutory criteria are satisfied.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
