FOC Supply under GST

[Harsh Saini]

Can anyone please elaborate the GST provision in respect of FOC supply under export of goods and services.

[ABHISHEK TRIPATHI]

Dear Harsh Sir,

What is your specific query ?

[KASTURI SETHI]

Sh.Harsh Sain Ji,

The query is too short to reply. Pl. elaborate your query before expecting elaborative/ comprehensive solution from the experts.

[YAGAY andSUN]

You have to reverse the ITC proportionately and get the GR Waiver form from your AD (Banker). Further, just take care that your FOC sample does not crosses the threshold limit of ₹ 1.00 crore as defined in RBI Master Directions. A certificate from your foreign counter part will also be required that goods sent on FOC had been destructed during lab test and would not be send back to India. This Certificate will be submitted to your AD (Banker) for closing of GR Waiver form.

AI Summary

Input Tax Credit Reversal Required for Free of Cost Exports; Follow RBI Guidelines for Sample Limits A query was raised regarding the Goods and Services Tax (GST) provisions for Free of Cost (FOC) supply under the export of goods and services. Respondents advised that the Input Tax Credit (ITC) must be reversed proportionately and a GR Waiver form obtained from the Authorized Dealer (AD) banker. Additionally, it was noted that FOC samples should not exceed 1 crore as per RBI guidelines. A certificate from the foreign counterpart is required to confirm the destruction of goods during testing, which must be submitted to the AD banker to close the GR Waiver form.