FOC Supply under GST

[Harsh Saini]

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

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.