Kindly guide
applicability of GST on promotional products giving free on purchase of Taxable products.
example: pencil is giving free on purchase of pen.
5 Replies
Sundararajan S
(Final Student of ICAI)
(1764 Points)
Replied 02 December 2018
You have to reverse the input tax credit of the item given as freebie.
mohit
(accountant)
(142 Points)
Replied 02 December 2018
what account entry should be passed for this in accounts book
RAHUL
(Student CA Final )
(377 Points)
Replied 02 December 2018
No GST is leviable on pencil as the value thereof is 0. Further no need to reverse ITC if pencil is received from the supplier free of cost.
pritesh
(CA Final student)
(7101 Points)
Replied 02 December 2018
you have to reversed the itc as per sec17(5) which deals with blocked credit
Sundararajan S
(Final Student of ICAI)
(1764 Points)
Replied 02 December 2018
Accounting entry for reversal of ITC
GST ITC Reversal Or Sales promotion Dr. (group in PL)
To ITC
GST ITC Reversal Or Sales promotion Dr. (group in PL)
To ITC
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