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Gst itc

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)

16 May 2017

whether a mobile given by a manufacturer ( nt a manufacturer of mobile co.) to a retailer under the target scheme will b covered under sch 1 even if itc has been availed on such mobile phone (permanent transfer of business asset where itc on such asset has been claimed)?

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2 Replies

CA RAJNISH KUMAR SHARMA (senior Team Member) (43 Points)
Replied 16 May 2017

As per GST law Supply defination is very wide and Mobile phone is given to retailer against targate achieve then it is a permanant transfer of fixed assets without consideration.

As per Sch. I , the activities specified in Sch I ,made or agreed to be made without a consideration includes supply.

finally it is a supply and we will charge SGST/CGST or IGST on such sale which ever is applicable .

CA RAJNISH KUMAR SHARMA (senior Team Member) (43 Points)
Replied 16 May 2017

Above reply basis on that Phone is Fixed assets of supplier .

But on the other hand if he is manufacturer of mobile phone then in this situation he gave mobile phone as an gift , free of cost and free sample and such transfer is covered also in supply defination and valuation as per rule .