Clarification on various doubts related to treatment of sales promotion schemes under GST - GST - Trade Notice No. 05/2019

Government of India Ministry of Finance, Department of Revenue Office of the Chief Commissioner, Goods and Services Tax Customs Guwahati Zone Crescens Building, M.G Road, Shillong-793001 Fax nos. 91-0364-2224747/2502047. Email: [email protected] Trade Notice No. 05/2019 Dated. Shillong the 26 th March.2019 Subject: Clarification on various doubts related to treatment of sales promotion schemes under GST. The Central Board of Indirect Taxes Customs has issued a Circular No. 92/11/2019-GST dated March 7, 2019 for the Trade and as well as all concerned regarding clarification on various doubts related to treatment of sales promotion schemes under GST (Copy enclosed for ready reference). Various representations have been received seeking clarification on issues raised with respect to tax treatment of sales promotion schemes under GST. To ensure uniformity in the implantation of the law across the field formations, the Board, in exercise of its powers conferred under Section 168(1) of the Central Goods and Services Tax Act, 2017 hereby clarifies the issues in the succeeding paragraphs of the said circular. It has been noticed that there are several promotional schemes which are offered by taxable persons to increase sales volume and to attract new customers for then-products. Some of these schemes have been examined and clarification on the aspects of taxability, valuation, availability or otherwise of Input Tax Credit in the hands of the supplier in relation to the said schemes which are listed hereunder: A. Free samples and gifts. B. Buy one get one offer C. Discounts including Buy more, save more offer. D. Secondary Discounts. This Trade Notice being issued so as to sensitize the trade and field formations about the contents of the aforesaid references and for complete details; the respective references may please be referred in the CBIC's website All Commissioners are requested to bring the contents of the Trade Notice to the notice of and the officers working under their charge and the taxpayers failing under their respective jurisdiction. The Trade Industry Associations/Chambers of Commerce are requested to bring the contents of the Trade Notice to the notice of all their members This issues with the approval of Chief Commissioner. (J.K. Simte) Additional Commissioner C.No. IV(16)01/CCO/TECH-I/GST/SH/2019/3270-98 Dated: 27 MAR 2019