Gst on gift voucher

kalisankar mallick (aticle assitance) (33 Points)

19 March 2020  

Question:-

Business A , new paper Company, purchase gift voucher worth Rs, 100,000 from Company B who deals with saris and garments of which gst on saris 5% and readymade garments 12% over worth Rs 1000/-

Now

1) what % age of GST will be charged by Company B  on transaction of Rs. 100000, and what will be the HSN/ sac code?

 Company A distributes the gift vouches of Rs 5000 denomination to its clients and employees who will eligible to redeem the gift voucher with company  B within specified period.

2) Now Company B what should do?

        a) what %age of GST will be charged or not  or

        b) Gifted amount will be adjusted from TAXABLE VALUE or Invoice value?

       c) What should be the accounting entries for COMPANY B