Gst on diwali gifts to clients

392 views 3 replies

Hi

my father is in business of publishing and has clients all over India but has one office in Delhi. he has appointed various sales man all over India

now he has purchased Laptop Bags to be given to school principles wherein his books are supplied

i am clear on the point of ITC

but what GST implication we should take into account while dirstributing these gifts

and when these gifts are supplied in other states , we would be supplying these to our sales person who will distribute them further . would that constitute as stock transfer

Replies (3)
GST will not be levied on free samples distributed, because it is not considered as supply also, ITC on such purchases are not allowed to supplier.
Agree with the above comments.

Since no consideration is involved, it cannot be regarded as Supply u/s 7(1)(a).
If you are giving or distributing free sample or gift, it is not considered as supply.
so ITC on such should be reversed.

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