The Applicant, inter alia engaged in business of manufacturing, marketing and distribution of cigarettes had sought advance ruling before the UP AAR to ascertain inter alia whether the extra packs of cigarettes given free of cost for purchase of certain packs, would be leviable to GST and whether the extra packs of cigarettes would be considered as exempted supplies or free samples.
The AAR observed that the additional packs were supplied for certain payment of packs. Accordingly, the Applicant was supplying two products at the price of one as ‘buy one get one free offer’. It was observed that the CBIC vide Circular No. 92/11/2019-GST dated 07 March 2019 had clarified that such additional supplies would not be liable to GST.
Golden Tobie Private Limited [TS-763-AAR(UP)-2021-GST]
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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