free products
Shanmugam Sukesh (2 Points)
25 July 2017
how will give free products to traders , many of them telling it will applicable for tax , is it true or any documents
Shanmugam Sukesh (2 Points)
25 July 2017
chamarthi venkatesh
(Student CA Articleship)
(848 Points)
Replied 25 July 2017
Karan Batra
(Creator: TheProTalks)
(2325 Points)
Replied 25 July 2017
I beg to differ here, As per my interpretation GST will not be applicable on free supplies, Have a look at the following provision
The charging section, Section 9 of the CGST Act imposes a tax on supply. Supply has been defined in Section 7 of the CGST Act as 'all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business'. A supply is a supply within the meaning of section 7 of the CGST Act only when 'it is made for a consideration'. If some activity is being done, without a consideration, it is not a supply within the meaning of section 7 of the CGST Act, and hence no tax is attracted under section 9 of the CGST Act. Thus, no GST is payable on free supplies of goods or services or both.
chamarthi venkatesh
(Student CA Articleship)
(848 Points)
Replied 25 July 2017
Karan Batra
(Creator: TheProTalks)
(2325 Points)
Replied 25 July 2017
Agree with you , however do clarify how a trader is related to assessee or is a Distinct person as per Section 25, as this deemed supply provision is applicable on only them
akshay
(article)
(105 Points)
Replied 25 July 2017
CAclubindia
