2019 (4) TMI 111

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.... supplied free of cost as a CSR activity. In order to ascertain the impact of GST on such goods supplied on free of cost, the applicant required advance ruling on the following: i) Determination of GST liability with respect to goods provided free of cost by the Distributors of M/s. PoIy Cab Wires Private Limited to KSEB for reinstating connectivity in flood ridden areas; and admissibility of input tax credit in relation to such goods. ii) Applicability of Sec. 17(5) of CGST Act, 2018 on CSR expenses. The authorized representative was heard. It is stated that Kerala State Electricity Board has requested from the distributors of the applicant to supply electrical goods for the restoration of power supply at flood ridden areas. These....

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....t shall not be available in respect of goods lost, stolen, destroyed, written off or disposed by way of gift or free samples. In this case after availing input tax credit, the applicant disposed goods as free supply for CSR activities, Hence, the applicant is liable to reverse the input tax credit already availed. However the petitioner is pointed out that with regard to billing of free of cost materials, distributors issued tax invoices showing sale value, GST and total amount with 100% discount and pay the GST liability to Government In such scenario, input tax credit can be availed only if, the output tax liability towards the outward supply was remitted to the Government. The applicant instructed its distributors to provide the goods at....