We are a distributor in pharma industry. We will give free products to both GST, non-GST medicalshops and direct customer also.
At end of the month we will create a report on free products given by us to medical shops. we will send this report to respective company.The same products or differnent products to the same value will be send to us on next month with bill value Zero. We sell those products.
Question is,
1. Do we need to charge GST for Free products which we are giving?
2. Do we get ITC for the products which is returned from company or do we need pay as reverse charge?
How GST will work in this case and what will happen to ITC?
CAclubindia
