Supply characterization under GST clarifies taxability and ITC treatment for promotional schemes including free samples and discounts. Clarifies GST taxability and Input Tax Credit consequences for promotional schemes: free gifts and samples supplied without consideration are not supply (except Schedule I) and do not attract ITC entitlement for the supplier; buy one get one offers are treated as multiple supplies charged for together with tax determined by composite or mixed supply characterization and the supplier may claim ITC; invoice level discounts established at or before supply may be excluded from value if valuation conditions are met and supplier may claim ITC; secondary post supply discounts generally do not qualify for exclusion and credit notes may be issued commercially without affecting supplier ITC rules.
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 characterization under GST clarifies taxability and ITC treatment for promotional schemes including free samples and discounts.
Clarifies GST taxability and Input Tax Credit consequences for promotional schemes: free gifts and samples supplied without consideration are not supply (except Schedule I) and do not attract ITC entitlement for the supplier; buy one get one offers are treated as multiple supplies charged for together with tax determined by composite or mixed supply characterization and the supplier may claim ITC; invoice level discounts established at or before supply may be excluded from value if valuation conditions are met and supplier may claim ITC; secondary post supply discounts generally do not qualify for exclusion and credit notes may be issued commercially without affecting supplier ITC rules.
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