TaxTMI 
TaxTMI 
Free Supply of Goods Under GST
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....ree Supply of Goods Under GST<br> Query (Issue) Started By: - nirmal dutta Dated:- 25-1-2021 Last Reply Date:- 7-2-2021 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Respected Sir / Madam We are into business of manufacturing Detergent Powder meant for daily basis use of common people. We frame many promotional schemes to consumer's, retailers, dealers, etc to compete & survive in t....
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....he market. Promotional items are given to motivate them on fulfillment of terms of the schemes. The schemes once completed are mostly given in Kinds. We purchase these Schemes items for distribution to our Consumers & Sellers. Also our products are mostly designed with consumers's offer i.e. coupon's mentioning items are inserted in the Detergent packets. Once a consumer buyes & opens a ....
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....packet they get the coupon & collects the mentioned item from of Sellers. We want to know that whether we are eligible of Input Tax credit on the purchase of such items. , Reply By Ganeshan Kalyani: The Reply: Sir, input tax credit is not allowed on the goods given away for free. You cannot claim input tax credit of the tax paid on purchase of those coupons. Reply By KASTURI SETHI: The Repl....
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....y: I support the views of Sh.Ganeshan Kalyani Ji. Such availment is not allowed under Section 17(5)(h) of CGST Act. EXCLUSION CLAUSE "Section 17(5) (h) : goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and Reply By Shilpi Jain: The Reply: As I understand there are 2 legs to this. One is to dealers under target schemes and the other is for en....
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....d consumers. There is a possibility of getting credit for dealers related schemes. Also on a better understanding of the scheme with the consumers, the ITC eligibility can be examined. Please have a look at the article to get some basic understanding on discount and other schemes and the credit eligibility. https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=8992 https://h....
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....iregange.com/a/implications-of-various-discount-and-promotion-schemes# Reply By KASTURI SETHI: The Reply: 2019 (26) G.S.T.L. 374 (A.A.R. - GST) = 2019 (6) TMI 1305 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IN RE : SANOFI INDIA LIMITED Reply By Bhavika Chothani: The Reply: You cannot claim ITC on free supplies<br> Discussion Forum - Knowledge Sharing ....