Supply treatment under GST: whether promotional giveaways or discounts affect valuation and ITC availability for suppliers. Clarification explains that free samples and gifts offered without consideration do not constitute supply except where covered by Schedule I, and ITC is disallowed for such distributions unless Schedule I applies. Buy-one-get-one offers are treated as multiple supplies charged at a single price, with tax treatment determined by composite or mixed supply rules; ITC is available for inputs used in such offers. Discounts shown on or agreed at supply can be excluded from value if statutory conditions and documentation are met; secondary post-supply discounts effected by credit notes do not qualify for exclusion and may be issued commercially.
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.
Supply treatment under GST: whether promotional giveaways or discounts affect valuation and ITC availability for suppliers.
Clarification explains that free samples and gifts offered without consideration do not constitute supply except where covered by Schedule I, and ITC is disallowed for such distributions unless Schedule I applies. Buy-one-get-one offers are treated as multiple supplies charged at a single price, with tax treatment determined by composite or mixed supply rules; ITC is available for inputs used in such offers. Discounts shown on or agreed at supply can be excluded from value if statutory conditions and documentation are met; secondary post-supply discounts effected by credit notes do not qualify for exclusion and may be issued commercially.
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