FOC sale under GST

[Guest]

Dear Sir,

Under GST if sale our FG and Raw material to any one to any domestic person or any Export person.

1) Under what documents we need to remove this material from factory.

2) Whether charge GST in this Documents or not ?

Regards

Swapnewar

[MUKUND THAKKAR]

Provided for under Section 17(5)(h) - Where goods are lost, stolen, destroyed, written off, or disposed of as gifts or free samples, proportionate input tax credit should be reversed. please generate documents (invoice) and mark FOC on body of invoices for accounting purpose.

This is my view.

[PAWAN KUMAR]

Dear Sir

As per my view,

1- tax invoice is to be issued for sale in domestic area sale. For export also invoice also to be issued.

2-in case of domestic sale of Fg GST will be charged as per applicable rate. In case of raw material itc shall be reversed equivalent to taken earlier on such raw material.

[PAWAN KUMAR]

Dear Sir

As per my view,

1- tax invoice is to be issued for sale in domestic area sale. For export also invoice also to be issued.

2-in case of domestic sale of Fg GST will be charged as per applicable rate. In case of raw material itc shall be reversed equivalent to taken earlier on such raw material. No gst is to be charged for export sale being zero rated supply.

[Ganeshan Kalyani]

Supply of goods without consideration is not liable to pay GST.

AI Summary

Free of cost supplies may require tax invoices and reversal of input tax credit, with exports treated as zero-rated. Tax invoices should be generated and marked 'FOC' for goods removed from the factory, including exports. Domestic free-of-cost supplies of finished goods attract GST considerations, and proportionate input tax credit must be reversed under Section 17(5)(h) for inputs/raw materials used in such disposals. Exports of FOC goods are treated as zero-rated supplies and not subject to GST; one respondent contends supplies without consideration are not liable to GST.