INVOICE FOR ITEMS ON GIVEN ON SCHEME AT RE. 1 OR FOR FREE

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This discussion clarifies how to handle invoicing for items supplied for free or at a nominal Re. 1 charge when you are a registered dealer. It explains that free supplies are generally not considered 'supply' under GST and can be moved using a delivery challan. For items invoiced at Re. 1, it addresses whether this attracts TDS under Section 194R, noting that TDS is not applicable if the value doesn't exceed Rs. 20,000 in a financial year.

ASHISH ARAT

ASHISH ARAT (Querist)
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06 February 2023 DEAR SIR,

HOW TO INVOICE FREE ITEMS WHEN ONE IS REGISTERED DEALER? DOES IT ATTRACT 194R IF WE MAKE INVOICE?

BEST REGARDS,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 February 2023 Issue bill of materials in case of free supply
Tax invoice required for Re 1 supply

No TDS under section 194R to be deducted if: value does not exceed Rs. 20,000 in a financial year.

R. B. Yadav (CMA, LLB)

R. B. Yadav (CMA, LLB) (Expert)
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06 February 2023 No need to issue Re. 1 invoice for free supplies as supply of free of cost is not supply under GST. Material can be moved on delivery challan.

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