Is this gap decided by your government now?
this is a relative new article and it looks still pretty open and left to the interpretation of tax consultants, lawyers and judges:
http://www.consultease.com/taxation/gst-in-india/free-samples-and-promotional-items-in-gst/
The scenario seems illogical to me.
If you purchase any material with free of cost, then there is no expectation of invoice from vendor.
Then how GST will be applicable for this scenario?
Can you please explain your expected accounting entry for this scenario.
Hello
I think same the scenario is illogical ,
the GST wont be liable for the FOC material , if the vendor is paid it under manufacturing purchase then they can reverse the credit at their end.
please correct me if I am wrong. this is what my understanding is.
thanks
kUnal
Hi,
Thank you .
Per User as per GST norms they need to maintain the GST on the Free item purchased and accordingly need to show this to authorities and for its subsequent claim .as availing .
and hence for the quantity they receive the material as free , the GST to be captured on that quantity
Regards,
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