GST compliance on sales scheme - Taxable item Free quanity, Goods and Services Tax - GST

[kiran kumar]

Dear Sir,

We are planning to introduce the new sales scheme for increasing the Sale. If any Buyer purchase 50 kg of Taxable material we are giving 10 kg taxable material for free.

Please advise the following points

1. In invoice how to show the free quantity

2. What is the Gst compliance for free Quantity

Thanks in advance

Regards,

Kiran Kumar

Posts / Replies

[KASTURI SETHI]

Mr.Kiran Kumar,

Before finalizing marketing strategy, you should go through the following circular, especially, para no.B

Sales Promotion Schemes under GST - Clarification on various doubts

C.B.I. & C. Circular No. 92/11/2019-GST, dated 7-3-2019

 

[Bhavika Chothani]

For goods supplied as free samples only quantity is required to be shown in GST returns. There will not be any taxable value or tax amount in this case. Hence add 10kg in the HSN.