Gst on non commercial stocks
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 June 2017
HI Everyone
Iam working in an FMCG company, we used to give schemes to the Stockist, that scheme quantity will be supplied to them as Free or Non Commecial stocks, for eg: if they take 7 cases we will give them 2 cases as free, now my question is what is the treatment of such free quantity supplied to them in GST, is there any provision in GST that abolishes the supply of such free quantiy, plz guide me
Regards
Santosh
Iam working in an FMCG company, we used to give schemes to the Stockist, that scheme quantity will be supplied to them as Free or Non Commecial stocks, for eg: if they take 7 cases we will give them 2 cases as free, now my question is what is the treatment of such free quantity supplied to them in GST, is there any provision in GST that abolishes the supply of such free quantiy, plz guide me
Regards
Santosh
12 June 2017
Under GST, when the supplies are made to an unrelated party without consideration (in your case free quanties), such free quantities provided to the Stockiest (assuming unrelated party) does not fall under the definition of supply and hence GST shall not be levied on such supplies.
However, as per Section 17 (5) (h) of the CGST Act, 2017 where goods are lost, stolen, destroyed, written off or disposed of by way of gift or free samples then the input tax credit availed on procurement of such goods needs to be reversed.
However, as per Section 17 (5) (h) of the CGST Act, 2017 where goods are lost, stolen, destroyed, written off or disposed of by way of gift or free samples then the input tax credit availed on procurement of such goods needs to be reversed.
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 June 2017
Thank you so much Ronak Doshi sir
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