FOC INVOICE

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This discussion clarifies how to handle Free of Charge (FOC) invoices for samples sent via transporter. It addresses reporting these invoices in GSTR-1 and GSTR-3B, and whether IGST is payable. The consensus leans towards not needing to pay GST if no consideration is received, but ITC reversal is a key concern. Guidance is sought on the specific GSTR-3B column for ITC reversal and whether E-way bills are required for interstate FOC supplies exceeding ₹50,000.

Haren

Haren (Querist)

16 January 2023 We have send some sample through Transporter by FOC INVOICE which Taxable Value come Rs. 8000.00 + IGST(18%) 1440.00=Rs. 9440.00(Gross Value)

Now our Question is - GSTR 1 & GSTR 3B Return where we show the above FOC Invoice ? Can we pay IGST(Rs. 1440.00) if Yes then Payment Procedure?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 January 2023 No need to show such invoice in GST return as no consideration received.
No need to pay GST.
Reverse ITC related to such supply.

Haren

Haren (Querist)

02 February 2023 How to Reverse ITC related to such supply??????????

Reverse ITC related to such supply Rs. 1440.00 shown in GSTR 3B return in which column?????????????????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 February 2023 Free sample is for business promotion no need to reverse ITC

Haren

Haren (Querist)

08 March 2023 If FOC Invoice value cross Rupee 50000.00 for Interstate supply then Ewaybill required ???????????????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 March 2023 E way bill required in such a case.

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