How to free supplies under gst invoice

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This query is : Resolved

mohit (Querist)

15 January 2019 We are giving free 1 Plastic bottle to customer if they purchase our chemical ( GST rate on Chemical is 18%).

Following queries related to above"
1. How to show in Invoice Free 1 Plastic Bottle along with the Chemical Product?
2. Reversal of ITC taken on the bottle?
3. GST will be levied on the Free product or not?

Rajesh Kumar

Rajesh Kumar (Expert)

15 January 2019 It is a case of composite or mixed supply. Tax shall be charged on the combined value (value of medicine) only. No reversal of ITC is required.

mohit

mohit (Querist)

15 January 2019 Sir, what will be the value of the bottle in the invoice which we have to give free?

mohit

mohit (Querist)

15 January 2019 Sir, what will be the value of the bottle in the invoice which we have to give free?

Rajesh Kumar

Rajesh Kumar (Expert)

16 January 2019 Value of bottle can be your cost price. You can show value of bottle in the invoice; and then give discount of the bottle value amount. Say, medicine is valued Rs. 100; bottle Rs.20. Add both the value, discount the value of bottle and charge Rs. 100 for the composite supply.

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