supply of goods under FOC
Query (Issue) Started By: – Ramakrishnan Seshadri Dated:- 20-1-2018 Last Reply Date:- 22-1-2018 Goods and Services Tax – GST
Got 6 Replies
GST
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 fo
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ction value should be adhered to. You will not be safe by ₹ 1 or Zero. 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 bo
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