FOC supply to customer
Query (Issue) Started By: – saravanan rengachary Dated:- 13-2-2018 Last Reply Date:- 19-2-2018 Goods and Services Tax – GST
Got 10 Replies
GST
Dear Sir,
\nFOC supply does not attract GST as there is no consideration received.
\nis there any restriction in availing GST input credit on the components\/raw materials consumed in manufacturing such FOC supply.
\nSaravanan.
\nReply By SHIVKUMAR SHARMA:
\nThe Reply:
\nYou are not Eligible for Input tax Credit for Mfg. of goods cleared on FOC Supply..
\nReply By saravanan rengachary:
\nThe Reply:
\nDear Sir,
\nis GST applicable on Warranty replacement?.
\nReply By saravanan rengachary:
\nThe Reply:
\nIf input is not eligible for FOC supply, is the input is eligible for warranty r<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n specified in section 25, when made in the course or furtherance of business: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rts\/components replaced. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" FOC supply to customer Query (Issue) Started By: – saravanan rengachary Dated:- 13-2-2018 Last Reply Date:- 19-2-2018 Goods and Services Tax – GSTGot 10 RepliesGSTDear Sir, FOC supply does not attract GST as there is no consideration received. is there any restriction in availing GST input credit on the components\/raw materials consumed in manufacturing such … Continue reading “FOC supply to customer”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-10415","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/10415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10415"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/10415\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nProvided 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.
\n3. Supply of goods-
\n(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or
\n(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
\n4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.
\nwill be ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION.
\nAll other<\/p>\n
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\nReply By KASTURI SETHI:
\nThe Reply:
\nWarranty replacement is never free. Tax already\/duty already paid at the time of clearance from the factory. When we purchase any goods from a dealer with warranty, cost of component\/material is included with duty paid. Hence it is not free supply. No reversal required. Agreed with Sh.Himansu Sekhar Ji.
\nReply By Alkesh Jani:
\nThe Reply:
\nSir,
\nHere the first question is whether GST is applicable on Free of Cost (FOC) goods or not? In this scenario the para 2. Schedule I states that
\n” 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:” So here it is very promine<\/p>\n
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