Party is invovled in sale of computer parts and other electronics. It also provides maintenance services including parts which are given free of cost.The party charges the customer only for Maintenance services within which the value of goods are also included.The party
pays gst on such services.
whether gst has to be paid on value given free of cost??
If no, then whether input has to be reversed?
charges gst on services provided
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Taxability of goods given without consideration
Replies (3)
This makes a composite supply and the whole supply is regarded as supply of services as the dominant nature is servicing... He needs to do valuation as per section 15 and apply the gst rate (of service) to the whole amount including goods supplied...
The above said supply is regarded as a "COMPOSITE SUPPLY". Refer the definition of Composite Supply as defined u/s 2(30) of the CGST Act 2017.
Your main supply ( PRINCIPAL SUPPLY ) is Supply of Computer Maintenance Services and supply of computer parts on FOC basis is naturally bundled with the main supply.
Refer Valuation Provision u/s 15 of the CGST Act 2017.
Your main supply ( PRINCIPAL SUPPLY ) is Supply of Computer Maintenance Services and supply of computer parts on FOC basis is naturally bundled with the main supply.
Refer Valuation Provision u/s 15 of the CGST Act 2017.
No gst on foc supply unless the taxable event falls under schedule 1 of cgst act
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