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Is GST applicable for the sales promotions in India


Last Updated on May 15, 2023 by Kanakkupillai

Is GST applicable for the sales promotions in India?

Earlier, the 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 is 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 approaching manner that the GST is applicable for the sales promotions in India reaches the audience through various portals. The confidence-building measures with new strategy will differ the audience reach. 
This sales promotion gains 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 on 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 for 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 and free samples, pharmacy, etc. The promotional scheme is said as BOGO (Buy One Get One” free) at the same price this gives a bulk reduction on fast-moving consumer goods such as food, pharma, 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 on understanding the GST eligibility on certain goods sales promotions.
How would the GST play in the treatment of Free sample and gift vouchers
How would the GST play in the treatment of Free sample 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, that too after the clearance of GST on their own. Section 7 favors those who are ought to use this promotional strategy. Consideration is the real matter here while a seller tends to reach out to his audience by this strategy. If one don’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 doubt or need an expert’s suggestion, feel free to ping us. Our accountant expects will assist you.
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