Tax treatment of sales promotion schemes clarifies supply classification and Input Tax Credit consequences under GST. Clarification explains GST taxability, valuation and availability of Input Tax Credit for sales promotion schemes: free samples and gifts without consideration are not supplies (except under Schedule I) and attract no ITC for related inputs unless they qualify as supply; buy-one-get-one offers are treated as multiple supplies with tax determined by composite/mixed supply rules and ITC available for related inputs; invoice-discount and pre-established volume discounts can reduce taxable value if statutory conditions are met, while secondary post-supply discounts issued by credit note do not reduce value unless statutory conditions apply.
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.
Tax treatment of sales promotion schemes clarifies supply classification and Input Tax Credit consequences under GST.
Clarification explains GST taxability, valuation and availability of Input Tax Credit for sales promotion schemes: free samples and gifts without consideration are not supplies (except under Schedule I) and attract no ITC for related inputs unless they qualify as supply; buy-one-get-one offers are treated as multiple supplies with tax determined by composite/mixed supply rules and ITC available for related inputs; invoice-discount and pre-established volume discounts can reduce taxable value if statutory conditions are met, while secondary post-supply discounts issued by credit note do not reduce value unless statutory conditions apply.
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