Sales promotion schemes under GST clarified: free samples not supply; BOGO taxed; discounts valuation and ITC rules explained. Clarifies GST treatment of sales-promotion schemes: free samples and gifts without consideration are not 'supply' (except Schedule I) and ITC on related inputs is disallowed unless Schedule I applies; BOGO offers are treated as multiple supplies priced as one with tax determined by composite/mixed supply analysis and ITC allowable for related inputs; invoice-level discounts satisfying section 15(3) are excluded from value and permit ITC adjustment, while secondary post-supply discounts via credit notes can be issued commercially but are not excluded from taxable value.
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Sales promotion schemes under GST clarified: free samples not supply; BOGO taxed; discounts valuation and ITC rules explained.
Clarifies GST treatment of sales-promotion schemes: free samples and gifts without consideration are not 'supply' (except Schedule I) and ITC on related inputs is disallowed unless Schedule I applies; BOGO offers are treated as multiple supplies priced as one with tax determined by composite/mixed supply analysis and ITC allowable for related inputs; invoice-level discounts satisfying section 15(3) are excluded from value and permit ITC adjustment, while secondary post-supply discounts via credit notes can be issued commercially but are not excluded from taxable value.
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