Supply of goods at nominal price to retailers against purchase of specified units of hosiery goods pursuant to a promotional scheme would qualify as individual supplies taxable at the rates applicable to each of such goods as per section 9 of the GST Act.
Credit of the input tax paid on the items being sold at nominal prices would be available to the applicant.
Nature of supply— In the instant case, the following questions have been raised for advance ruling—
(1) Whether the supply of goods such as gold coins, refrigerator, mixer grinder, cooler, split air conditioner, etc. at nominal price to retailers against purchase of specified units of hosiery goods pursuant to a promotional scheme would qualify as individual supplies taxable at the rates applicable to each of such goods as per section 9 of the CGST Act or mixed supply taxable at the highest GST rate as per Section 2(74) read with section 8 (b) of the CGST Act, 2017, in light of the fact that the hosiery goods and good being sold at nominal price are sold under separate invoices with separate prices.
(2) Whether credit of the input tax paid on the items being sold at nominal prices (as indicated above) would be available to the applicant.
This authority find that the supply shall not fall under the category of ‘composite supply’ since supply of hosiery goods and goods under promotional scheme cannot be considered as naturally bundled and supplied in conjunction with each other in the ordinary course of business.
The goods under promotional scheme cannot be treated as ‘gift’ since ‘gift’ is something which is given completely out of one’s volition and without any concomitant charge. In the instant case, the applicant intends to provide the said goods to the retailers at a certain consideration, though at a very nominal price and that too upon fulfilment of the criteria as specified in the scheme circular. Hence, it cannot be said that the said goods are being given as ‘gift’ and therefore restriction of availment of input tax credit under clause (h) of Sub-section (5) of Section 17 shall not be applicable in respect of the said goods.
Held that— Supply of goods at nominal price to retailers against purchase of specified units of hosiery goods pursuant to a promotional scheme would qualify as individual supplies taxable at the rates applicable to each of such goods as per section 9 of the GST Act.
Credit of the input tax paid on the items being sold at nominal prices would be available to the applicant.
Supply of goods at nominal price to retailers against purchase of specified units of hosiery goods pursuant to a promotional scheme would qualify as individual supplies taxable at the rates applicable to each of such goods as per section 9 of the GST Act.
Credit of the input tax paid on the items being sold at nominal prices would be available to the applicant.
Nature of supply— In the instant case, the following questions have been raised for advance ruling—
(1) Whether the supply of goods such as gold coins, refrigerator, mixer grinder, cooler, split air conditioner, etc. at nominal price to retailers against purchase of specified units of hosiery goods pursuant to a promotional scheme would qualify as individual supplies taxable at the rates applicable to each of such goods as per section 9 of the CGST Act or mixed supply taxable at the highest GST rate as per Section 2(74) read with section 8 (b) of the CGST Act, 2017, in light of the fact that the hosiery goods and good being sold at nominal price are sold under separate invoices with separate prices.
(2) Whether credit of the input tax paid on the items being sold at nominal prices (as indicated above) would be available to the applicant.
This authority find that the supply shall not fall under the category of ‘composite supply’ since supply of hosiery goods and goods under promotional scheme cannot be considered as naturally bundled and supplied in conjunction with each other in the ordinary course of business.
The goods under promotional scheme cannot be treated as ‘gift’ since ‘gift’ is something which is given completely out of one’s volition and without any concomitant charge. In the instant case, the applicant intends to provide the said goods to the retailers at a certain consideration, though at a very nominal price and that too upon fulfilment of the criteria as specified in the scheme circular. Hence, it cannot be said that the said goods are being given as ‘gift’ and therefore restriction of availment of input tax credit under clause (h) of Sub-section (5) of Section 17 shall not be applicable in respect of the said goods.
Held that— Supply of goods at nominal price to retailers against purchase of specified units of hosiery goods pursuant to a promotional scheme would qualify as individual supplies taxable at the rates applicable to each of such goods as per section 9 of the GST Act.
Credit of the input tax paid on the items being sold at nominal prices would be available to the applicant.