PROMOTIONAL MATERIALS without discharged of GST?
Query (Issue) Started By: – rai tomar Dated:- 15-2-2019 Last Reply Date:- 27-6-2019 Goods and Services Tax – GST
Got 8 Replies
GST
Dear Experts,
We dispatch sales promotional material like T-Shirt, umbrella, grooming kit, products catalogue, price list, diary , display stand etc. to our dealers and did not discharged GST thereon. we treat this type of supply as "NIL Rated" supply.
1- Whether Sales promotional material can be send without discharged of GST?
2- When we treated this supply as NIL Rated , whether we should be reported in Table 3.1 (c) of GSTR-3B or not?
3- If should be reported in 3B, whether ITC will have to reversed or not?
Thanks in advance
Reply B
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tional material can be send without discharged of GST?
Answer:- Refer the scenarios given below.
Q.2. When we treated this supply as NIL Rated , whether we should be reported in Table 3.1 (c) of GSTR-3B or not?
Answer:- It is not NIL rated supply. Refer scenarios given below.
Q.3. If should be reported in 3B, whether ITC will have to reversed or not?
Answer:- It should be reported in 3B as a taxable supply only if you are following 1st scenario as given below and no need to disclose in 3B if you are not following the same.
SCENARIOS:-
1. You have availed the ITC of such promotional goods:-
When you provide your promotional items free of cost, you have to pay GST based on entry no. 1 of Schedule I of CGST Act, "Permanent transfe
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o avail the credit for such scenarios by endorsing such promotional and branding activities to a third party service provider (whoever it can be but should be a registered person) and avail the ITC on the invoice raised by him.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
I endorse the views of Shri Spudarjunan.
Reply By KASTURI SETHI:
The Reply:
I support the views of both experts.
Reply By KASTURI SETHI:
The Reply:
Explanation by Sh.Spudarjunan S. is par excellence. His understanding and interpretation is really appreciable.
Reply By KASTURI SETHI:
The Reply:
De facto, there is no 'Free Lunch' in the business.
Reply By Ganeshan Kalyani:
The Reply:
1. Supply of sales promotional material can be send without GST. In t
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