Sir/ madam
We have obtained advance ruling regarding promotional & free supply to boost the marketing. The product is cigarette.
Scheme is buy 1 get 2 free .
ARA order clearly says no need to pay GST on free & promotional supply and also no need to reverse ITC.
My query is will the GST cess also be exempted on such free & promotional supply. Since GST is levied advalorum and GST Cess is on qty.
Thanks & regards
Amresh kumar
Debate on GST Cess Applicability for 'Buy 1 Get 2 Free' Cigarette Promotions; Exemption Status Unclear A discussion in a forum revolves around whether GST cess applies to promotional free supplies, specifically in a 'buy 1 get 2 free' cigarette scheme. An advance ruling stated no GST is due on such supplies, but the query remains if GST cess is exempt. Opinions vary: some suggest filing a new application to exempt the cess, while others argue that cess, being ad valorem, is independent of GST exemption. References to case law and the Compensation Cess Act were made, with participants offering differing interpretations and advice on how to proceed legally. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
