WHAT WE CAN SHOW FREE QUANTITY OR SCHEME QUANTITY IN GST SALES INV.AS GST ACT

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This query is : Resolved

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This discussion clarifies how traders can display free or scheme quantities on GST sales invoices, such as offering 2 free cartons with a purchase of 10. The consensus is that such schemes are permissible under GST. The recommended approach is to show the total quantity (e.g., 12 cartons) on the invoice and detail the free quantity as a trade discount. Reversing ITC on the free quantity is generally not required as it's considered a trade discount, not a free gift.

kashi ram

kashi ram (Querist)
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16 June 2021 Respected Sir,
We are traders of cold drinks item , we have cold drink trading to our customer with scheme item in gst inv.
for example
sale qty- 10 carton, GST paid
free/scheme qty - 2 carton Free
total - 12 caton
as per GST act we can give scheme qty or free qty to our customer
Please guide me

CA Altamush Zafar

CA Altamush Zafar (Expert)
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16 June 2021 Show it as discount in the invoice itself.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 June 2021 Yes, Such schemes are allowed under GST, you can give.

CA Puja Sharma

CA Puja Sharma (Expert)
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17 June 2021 Yes, you can give such schemes.
On the invoice you will mention the correct quantity. Under the discount mention the details of 2 quantity.
Further, in my opinion you should reverse the ITC on the 2 quantities you have given for free.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 June 2021 No need for reversal of ITC in such schemes.
It's not a free gift it's only trade discount.