Free issue material...
Pushpak Parmar (1 Points)
12 April 2017Pushpak Parmar (1 Points)
12 April 2017
BN Murali
(Manager)
(129 Points)
Replied 12 April 2017
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 12 April 2017
Not all supplies without consideration is taxable under GST. However Input tax credit related to free supply is required to be reversed.
Shivam Chomal
(498 Points)
Replied 08 June 2017
Reversal of input tax credit in case of free supply is the provision considering VAT i.e involving "sale" but under GST works contract is treated as service so reversal of credit doesnt fit. Also although model act considered free issue as supply but there is still confusion regarding it in the passed act as to wheteher or not to treat it as supply.Moreover flow of consideration cant be ingnored which majorly depend on the nature of contract drafted between contractor and contractee.But still,more clarification is required from government side.
Vipul
(Manager FInance)
(22 Points)
Replied 22 November 2017
Free issue on what?
If free issue is for jub work etc, there is no need to consider it. Simply a bill of service value can be raised. Supplier has already paid GST on goods supplied.
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