My cost of purchases is 20% of sales dealing in different types of ayurvedic products
At the time of sale i give some free products along with other products
What will be implication on free item
whether itc need to be reversed or i need to pay tax on free item?
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Free items
Replies (15)
Are giving those free products to all customers or on specific
Sir,
You need not to collect GST on such product given free of cost (except when you give free products to your relatives).
You need not to collect GST on such product given free of cost (except when you give free products to your relatives).
when u give free to ur related persons(includes relatives,etc.,) u need to pay tax to Dept.
as per sec. 17(5)(h) of cgst act 2017, free samples are liable to gst if itc availed on purchase of these goods. you can use your itc against output gst leviable on free samples.
you have to reversed your ITC ....
@ pankaj ... please clear this rule first .... no mention you can avail ITC on it... on goods disposed,write off,damage,free sample in all case you cant avail ITC you have to reverse it
When you distribute any free samples , any input tax that you have availed on such free samples while purchasing and have taken the credit of the same shall be reversed at the time of distribution of that free sample.
Dear Mr CA Gagan Kamboj Ji.,
You can follow both way...
If You give free the You can Reverse the ITC...
If You will pay Tax then You can prepare Sales Invoices...
But,
The all are under Business related activities. So, We/You/Clients can't sell it for based on Customer...
So, Advisable for Reverse the ITC of Free Goods...
You can follow both way...
If You give free the You can Reverse the ITC...
If You will pay Tax then You can prepare Sales Invoices...
But,
The all are under Business related activities. So, We/You/Clients can't sell it for based on Customer...
So, Advisable for Reverse the ITC of Free Goods...
It is better to reverse the input tax claim you had taken.
i am not giving free to all customer
m not giving free samples. i am giving free items as a discount
m not giving free samples. i am giving free items as a discount
ok thanku sir .... but i am rasing seprate invoive for free item showing 10 paise in the invoice. is this ok or not
if you are giving quantity discount then gst is payable on actual amount charged from customer.
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