C Form for items given to customer free of cost

[saket s]

Hi,

• ABC is having manufacturing facility in the state of Maharashtra, ABC sales its goods on pan India basis to its customer through depots.
• ABC also makes interstate purchases for promotional items i.e. goods which will be given to customer free of cost as part of marketing /sales incentive schemes
• These promotional items are first transfer to various depot (as scheme is applicable to PAN India) and ABC does centralized purchases.
• These promotional items given to customer free of cost as sales promotion

The issue is can ABC issue C forms to its vendor for purchasing these promotional items?

Pls enlighten with suitable caselaw.

Saket

AI Summary

Form C entitlement: purchasers may issue Form C for bought promotional items given free to customers, subject to registration amendment.
Entitlement to issue Form C for interstate purchases of promotional items intended for free distribution: free samples given with products are not separately taxable, and items purchased by the business from a vendor are treated as business purchases allowing issuance of Form C; the purchaser must amend its CST registration to include these items to inform the VAT department.