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

Taxability of free supplies: free-of-charge goods in course of business treated as taxable requiring valuation and GST payment.
Free provision of goods in the course or furtherance of business is treated as a taxable supply and requires determination of the taxable value and payment of GST. Supplies without consideration between related or distinct establishments are within the supply rules and need valuation; nominal pricing is not a safe approach. Employee gifts under the specified exemption and genuine warranty replacements may be excluded from tax; however, free transfers commonly attract departmental scrutiny and may require input tax credit adjustments.