PROMOTIONAL MATERIALS without discharged of GST?

[rai tomar]

Dear Experts,

We dispatch sales promotional material like T-Shirt, umbrella, grooming kit, products catalogue, price list, diary , display stand etc. to our dealers and did not discharged GST thereon. we treat this type of supply as 'NIL Rated' supply.

1- Whether Sales promotional material can be send without discharged of GST?

2- When we treated this supply as NIL Rated , whether we should be reported in Table 3.1 (c) of GSTR-3B or not?

3- If should be reported in 3B, whether ITC will have to reversed or not?

Thanks in advance

AI Summary

Clarification on GST for Free Promotional Items: Not Supply, Requires ITC Reversal Under Section 17(5) CGST Act. A discussion on a forum addresses whether sales promotional materials can be dispatched without discharging GST. The initial query raises questions about classifying such supplies as 'NIL Rated' and reporting them in GSTR-3B. Responses clarify that if promotional items are provided free, they are not considered supply, requiring reversal of input tax credit (ITC) under section 17(5) of the CGST Act. If provided for consideration, they are taxable. Scenarios are discussed regarding ITC availed or not availed. Experts agree on the interpretation, suggesting using third-party service providers to potentially benefit from ITC.