Where to show an FOC(FREE OF COST) Invoice in GST Returns

[Rishabh Mishra]

Dear Experts,

Please provide solution for the treatment on Free of Cost supply in GST Returns(i.e. GSTR-1, GSTR-3B). In which return we can show an FOC Invoice. Please suggest.

[Ganeshan Kalyani]

In my view, such detail cannot be reported in the return because there is no value for supply of free goods. However, the input tax credit reversed proportionate to free goods need tpbe shown in the GSTR 3B.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Kalyani.

[Rishabh Mishra]

THANK YOU, SIR.

AI Summary

Free of cost supply treatment: proportionate input tax credit must be reversed and reported in GSTR-3B return. Free of cost supplies carry no taxable value and therefore are not reported as taxable outward supplies in returns. However, the supplier must proportionately reverse input tax credit attributable to inputs used for free supplies, and that reversal must be disclosed in the periodic summary return (GSTR-3B).