GST treatment of sales promotion schemes: defining supply, valuation and ITC consequences for free goods and discounts. Clarifies GST taxability, valuation and Input Tax Credit (ITC) treatment of sales promotion schemes: free goods without consideration are not a supply except as per Schedule I (and attract ITC denial for inputs used unless treated as supply); 'buy one get one' is treated as multiple supplies priced together with tax determined by composite/mixed supply rules and ITC allowable; pre-established invoice discounts can reduce taxable value if statutory conditions are met, while post-supply commercial credit notes do not reduce taxable value unless conditions 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.
GST treatment of sales promotion schemes: defining supply, valuation and ITC consequences for free goods and discounts.
Clarifies GST taxability, valuation and Input Tax Credit (ITC) treatment of sales promotion schemes: free goods without consideration are not a supply except as per Schedule I (and attract ITC denial for inputs used unless treated as supply); 'buy one get one' is treated as multiple supplies priced together with tax determined by composite/mixed supply rules and ITC allowable; pre-established invoice discounts can reduce taxable value if statutory conditions are met, while post-supply commercial credit notes do not reduce taxable value unless conditions are satisfied.
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