No. EXN-F(10)-33/2018

SGST Advance Ruling Authority

GST – West Bengal AAR - Sales promotion scheme, Mixed supply or Composite supply, Valuation of goods supplied under sales promotion scheme, Blocked credit - under the sales promotion scheme the applicant offers various items at a discounted price to its retailers on purchase of specified units of goods for which separate invoices is issued for supply of goods and supply of goods offered under promotional scheme - determination of nature of supply and admissibility of input tax credit on supply of goods under sales promotion scheme – HELD - the supply of hosiery goods followed by the supply of goods under promotional scheme shall not take place for a single price - As the supply of the aforesaid two items shall be made for different prices, it doesn’t satisfy the condition of being ‘made for a single price’ and the supplies, therefore, cannot be regarded as mixed supply – further, the said 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 - supply of hosiery goods and goods under promotional scheme are separate supply and tax on the supply shall be levied at the rate of each such item as notified by the Government - the applicant intends to provide the goods under promotional scheme 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, 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 - the value of the goods supplied under sales promotion scheme shall be required to be determined as per provision of section 15 r/w rule 27 of the CGST Rules as in the instant case, price is not the sole consideration for the supply

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