Earlier, business quality was measured through success and loss. Thus, this was conveyed as the quality of a service or a product is directly proportional to its brand awareness rather say reach. But, this scenario has totally changed nowadays; everything is in brand promotion and the ability to convince the target population. The transition in your growth and brand publicity is immense if the brand promotion is excellent. The marketing of your brand determines the success reach, which shows immense response from the targeted population. The promotional strategy must be designed in a manner that makes GST applicable for sales promotions in India to reach the audience through various portals. The confidence-building measures with the new strategy will differ in the audience reach.
This sales promotion gains are positive for mutual funds, equity shares, gold, property on housing, etc. It is necessary to file as Long-term (LTCG) and Short-term (STCG) are two types
The short and long term sales on shares, bonds, equity mutual funds, a zero-coupon bond.
Short term is the sales that are gained within 12 months from purchase date, while the long term is the profit and sales achieved after 12 months from the date of purchase.
The short- and long-term sales of the movable property with debt mutual funds.
For the short term, within 36 months from the purchase date; for the long term, after 36 months from the purchase date.
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The GST clarification on companies’ input credit states, “the supplier shall be entitled to avail input tax credit for such inputs, input services and capital goods used concerning the supply of goods or services or both on such discounts,” in the circular form. GST is not applicable for gifts, free samples, pharmacy, etc. The promotional scheme is said to be BOGO (Buy One Get One” free) at the same price. This gives a bulk reduction on fast-moving consumer goods such as food, pharma, and retail. They will not credit reverse input tax.
There needs to be better clarification on subsidy given by the government on certain goods and their taxes provided to the customers, for which “A long-awaited clarification has now been issued. Many aspects have been covered, though the one relating to subsidy has not been addressed. It will be good if that too is clarified,” said Anita Rastogi, partner, PwC.
Thus, better clarity and good promotion policy and terms favour excellent output in understanding GST eligibility for certain goods sales promotions.
How would the GST play in the treatment of Free samples and gift vouchers?
So how would the free products take their chances to be viral even though there is a huge obstacle called GST? Come on, no one will offer you a product for no cost, and that too after the clearance of GST on their own. Section 7 favours those who ought to use this promotional strategy. Consideration is the real matter here, while a seller tends to reach out to his audience through this strategy. If one doesn’t have consideration for supplying free goods, it wouldn’t be treated as a term ‘supply’.
These strategies clearly show that GST Registration Online is not a threat if you move with complete knowledge. If you personally have any doubts or need an expert’s suggestion, feel free to ping us. Our accountant expects us to assist you.
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