Tax treatment of promotional schemes clarifies supply characterisation, valuation rules and ITC consequences for discounts and freebies. Clarifies taxability, valuation and Input Tax Credit treatment for promotional schemes: free samples and gifts without consideration are not supplies except where Schedule I applies and ITC is disallowed; bundled offers like buy-one-get-one are assessed as composite or mixed supplies with ITC available for related inputs; known pre-supply or invoice discounts can be excluded from value if section 15(3) conditions are met while secondary post-supply discounts do not qualify for exclusion though commercial credit notes may be issued.
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 promotional schemes clarifies supply characterisation, valuation rules and ITC consequences for discounts and freebies.
Clarifies taxability, valuation and Input Tax Credit treatment for promotional schemes: free samples and gifts without consideration are not supplies except where Schedule I applies and ITC is disallowed; bundled offers like buy-one-get-one are assessed as composite or mixed supplies with ITC available for related inputs; known pre-supply or invoice discounts can be excluded from value if section 15(3) conditions are met while secondary post-supply discounts do not qualify for exclusion though commercial credit notes may be issued.
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