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CBIC Circular on New GSTR Form and Promotional Offers

The Central Board of Indirect Taxes and Customs (CBIC) have announced uncomplicated Goods and Services Tax return GSTR form. They further issued an explanation regarding the tax applicability on promotional schemes like “Buy One, Get One Free.” Thus aims at providing relief to the businesses from tax litigation for easier compliance.

One clarification consists of the issue regarding GST applicability on the component of TCS (Tax Collected at Source). After re-analyzing such issue, CBIC in consultation with CBDT decided that TCS will not attract GST.

As per the circular issued on Thursday, “The CBDT has clarified that TCS is not a tax on goods but an interim levy on the income possibly arising from the sale of goods by the buyer and to be adjusted against the final income- tax liability of the buyer.”

The other circular presented on Thursday explained the case regarding the sales promotion schemes like “Buy One, Get One Free” where the GST will be applicable on the amount imposed based on which ITC will be determined.

As per the CBIC circular issued on Thursday night, “It may appear at first glance that in case of offers like ‘Buy One, Get One Free’, one item is being ‘supplied free of cost’ without any consideration. Instead, it is a case of two or more individual supplies where an amount is imposed for the entire supply. It may be treated as a supply of two goods for the price of one.”

Moreover, there are new GSTR forms that are issued by the Government to file GST returns in future.

You can download the new GSTR forms by using the following links:

GST Return – Normal: https://tutorial.gst.gov.in/offlineutilities/returns/NewGSTReturn_Normal.pdf

GST Return – Sahaj: https://tutorial.gst.gov.in/offlineutilities/returns/NewGSTReturn_Sahaj.pdf

GST Return – Sugam: https://tutorial.gst.gov.in/offlineutilities/returns/NewGSTReturn_Sugam.pdf

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