The GST Mitra

                            Govt nods to GST levy on sales promotion schemes The CBIC Thursday clarified on the vexed issue of levy of GST on sales promotion schemes like ‘buy one get one free’ offered by FMCG firms, saying taxes would be paid on the price recovered from the customer. The Central Board of Indirect Taxes and Customs (CBIC), under the Finance Ministry, said that in case of offers like Buy one, Get one free’ it may appear at first glance that one item is being supplied free of cost’ without any consideration. “In fact it is not an individual supply of free goods but a case of two or more individual supplies where a single price is being charged for the entire supply. It can at best be treated as supplying two goods for the price of one’,” the CBIC said. PwC Partner and Leader Indirect Tax Pratik Jain said it has been clarified that ‘under buy one get one’ scheme, GST would be paid on the pri...