supply of goods under FOC

[Ramakrishnan Seshadri]

Dear Sir/Experts.

We kindly request you to reply our question.

Our Customer wants us to supply some parts under FOC or Free of supply. What is the procedure under gst.

Whether we have to charge GST in our invoice or what to do.

Please advise.

Thanks & Regards,

S.Ramakrishnan

AI Summary

Experts Debate GST on Free Supplies: Taxable Unless Under Warranty or Below 50,000 Gift Threshold per CGST Act, 2017. A discussion on the supply of goods under Free of Cost (FOC) in the context of Goods and Services Tax (GST) reveals differing opinions. One expert suggests that free supplies in business are taxable and advises paying GST to avoid departmental scrutiny, except for gifts under 50,000. Another expert notes that if the supply is under warranty or accompanies a main item, GST may not apply. A further opinion highlights that nominal or zero value transactions are not safe for GST purposes. It is emphasized that such supplies should be valued, and GST should be paid accordingly, referencing relevant provisions of the CGST Act, 2017.