Kind Gifts(Gold Coins) to Customers attract GST?

[RameshBabu Kari]

Q1.Kind Gifts(Gold Coins) to Customers attract GST?

Q2- Product samples given to Customers attract GST?

How to show gst on outward of gifts to customers ?

[Rajagopalan Ranganathan]

Sir,

As per Sl. No. 18 of Schedule V of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 the rate of CGST payable on coins is 1.5%. Hence if you give gold/silver coins as gift to customers it will be treated as supply and liable to tax.

As far as samples are concerned unless specifically exempted by suitable Notification tax is payable on samples given to customers since it will also treated as supply.

Gst paid on gifts shall be paid as if it is a supply of taxable goods.

[Himansu Sekhar]

On both the cases there will be no gst as there is no consideration. For the samples, FAQ has been released. Only credit if any taken to be reversedf.

AI Summary

Debate on GST Applicability: Are Gold Coin Gifts and Product Samples Taxable? Differing Interpretations Emerge. A discussion on whether gifts, specifically gold coins, and product samples given to customers attract GST. One participant cited a notification stating that gold/silver coins given as gifts are considered a supply and are liable to a 1.5% CGST. Samples are also taxable unless exempted by a specific notification. Another participant argued that there is no GST on gifts or samples due to the lack of consideration, but any input credit taken must be reversed. The discussion reflects differing interpretations of GST applicability on gifts and samples.