Free of cost product treatment in GST
This query is : Resolved
16 June 2018
Respected all,
If we want to give the product at free of cost but we are billing the same at 1 RS then whether we have to reverse the credit taken on such product??
16 June 2018
if I will show it as free sample then it will be deducted from qty and no charges should b collected for same?? no GST to b charged??
16 June 2018
it will be deducted from qty - YES...
and
no charges should b collected for same?? - YES...
no GST to b charged?? - YES... If You will charge GST for the supply then it's not FREE OF COST SUPPLY.
and
no charges should b collected for same?? - YES...
no GST to b charged?? - YES... If You will charge GST for the supply then it's not FREE OF COST SUPPLY.
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Vishakha Kejriwal.
(Expert)
18 June 2018
Free samples are part of business assets and in case you have availed ITC on such samples it is very much a supply as per Schedule I of the CGST Act and liable to GST even if without consideration..
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