<p><span>The Ministry of Finance's Circular No. 92/11/2019-GST, issued on March 7, 2019, provides clarity on the tax treatment of various sales promotion schemes under the GST regime. Here are the key highlights:</span></p><ol start="1"><li><span><strong>Free Samples and Gifts</strong>: Goods or services supplied free of cost, without any consideration, are not treated as 'supply' under GST, except for activities mentioned in Schedule I of the CGST Act. Input Tax Credit (ITC) is not available for inputs, input services, and capital goods used in relation to gifts or free samples distributed without consideration.</span></li><li><span><strong>Buy One Get One Free Offers</strong>: Such offers are treated as two or more individual supplies where a single price is charged. Taxability depends on whether the supply is composite or mixed, as per Section 8 of the CGST Act. ITC is available for inputs, input services, and capital goods used in relation to these offers.</span></li><li><span><strong>Discounts, Including 'Buy More, Save More' Offers</strong>: Discounts offered by suppliers, including staggered and post-supply volume discounts, are excluded from the value of supply if they satisfy the parameters in Section 15(3) of the CGST Act. ITC is available for inputs, input services, and capital goods used in relation to such discounts.</span></li><li><span><strong>Secondary Discounts</strong>: Secondary discounts, which are not known at the time of supply and offered after the supply is over, do not qualify for exclusion from the value of supply. ITC remains unaffected by such discounts.</span></li><li><span><strong>Trade Notices and Implementation</strong>: Trade notices should be issued to publicize the contents of the Circular. Any difficulties in implementation should be reported to the Board.</span> <a href="https://cms.plasament.com/storage/nisha/circular-cgst-92.pdf">circular-cgst-92</a><br> </li></ol>