Tax treatment of sales promotion schemes clarified: supply classification and ITC consequences for samples, offers, and discounts. Clarification of GST treatment and ITC consequences for sales promotion schemes: free samples and gifts without consideration are not supplies unless covered by Schedule I and attract denial of ITC for related inputs unless treated as supply; buy one get one and bundled pricing are treated as aggregated supplies with taxability determined by composite/mixed supply rules; invoice and pre established volume discounts that meet statutory conditions may be excluded from value and allow supplier ITC, while secondary post supply discounts via credit notes do not qualify for exclusion unless statutory conditions are met.
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Tax treatment of sales promotion schemes clarified: supply classification and ITC consequences for samples, offers, and discounts.
Clarification of GST treatment and ITC consequences for sales promotion schemes: free samples and gifts without consideration are not supplies unless covered by Schedule I and attract denial of ITC for related inputs unless treated as supply; buy one get one and bundled pricing are treated as aggregated supplies with taxability determined by composite/mixed supply rules; invoice and pre established volume discounts that meet statutory conditions may be excluded from value and allow supplier ITC, while secondary post supply discounts via credit notes do not qualify for exclusion unless statutory conditions are met.
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