Goods and Services Tax – Started By: – Ramakrishnan Seshadri – Dated:- 20-1-2018 Last Replied Date:- 22-1-2018 – Dear Sir/Experts.We kindly request you to reply our question.Our Customer wants us to supply some parts under FOC or Free of supply. What is the procedure under gst.Whether we have to charge GST in our invoice or what to do.Please advise.Thanks & Regards,S.Ramakrishnan – Reply By KASTURI SETHI – The Reply = From your query, it appears that free supply is in the course or furtherance of business. Hence It is taxable. Moreover, free supply always creates doubt in the eyes of the department. To be safer pay tax. Also read Section 25. There is provision for free gift up to ₹ 50,000/- with out GST but in your case it is not
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. Nobody gives free goods to anyone. – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Schedule I of CGST Act, 2017 following ACTIVITIES ARE TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION: – 1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets. 2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business: Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both. 3. Supply of goods- (a) by a principal to his agent where the agent undert
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