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 and SUN]

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

Free of charge supply under export requires reversing input tax credit and obtaining GR waiver with destruction certificate.
FOC supply under export requires proportionate reversal of input tax credit and obtaining a GR Waiver from the authorized dealer bank; exporters must ensure free samples do not exceed the regulatory threshold and must submit a foreign recipient's certificate confirming destruction of the goods and non return to India for closure of the GR Waiver.