Free of Cost material under GST

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..... Free of Cost material under GST
Query (Issue) Started By: - SURYAKANT MITHBAVKAR Dated:- 15-7-2017 Last Reply Date:- 16-7-2017 Goods and Services Tax - GST
Got 2 Replies
GST
We are manuf .....

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..... acturing of Pharmaceutical Machinery registered under GST Act. In routine course we require to send material for free of cost to our customer. While sending the FOC material we will charged GST as pe .....

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..... r law with tax invoice. In this case we are not recovering any cost from our customer also we are costing the material 110%. My question is that invoice we will prepare for the above transaction what .....

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..... type of precaution we will take so that our finance department is not debited the amount to customer account and follow up for payment. Reply By KASTURI SETHI: The Reply: Taxable value should not b .....

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..... e less than that of similar goods available in the market. Reply By CS SANJAY MALHOTRA: The Reply: No GST is leviable in case of FOC material, only Input Tax Credit needs to be reversed as per Rule .....

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..... 17(5) of CGST/SGST Act. FOC material is to be cleared on Delivery Challan.
Discussion Forum - Knowledge Sharing .....

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