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

GST on gifts: gifts of gold or silver coins may constitute taxable supply and attract GST, treatments vary. Gifts of gold or silver coins to customers are treated as a taxable supply and attract GST at the rate applicable to coins under the notified rate; product samples given to customers are also treated as taxable supplies unless specifically exempted. GST paid on gifts and samples should be accounted for as outward supplies. A contrary practical view notes no GST where no consideration is received, but requires reversal of any input tax credit per published FAQs.