In re Deputy Commissioner, CGST & C.Ex (GST AAAR Uttar Pradesh)
No GST on extra packs of cigarettes supplied along with regular supply under single price
The AAAR, Uttar Pradesh in the matter of M/s Deputy Commissioner, CGST & C.EX. Division-2[Order No- UP/AAAR/01/2022 dated May 23, 2022] upheld the AAR order and stated that Goods and Services Tax (“GST”) shall not levied on extra packs of cigarette supplied along with regular supply.
Facts:
M/s Golden Tobie Private Limited (“the Respondent”) has engaged in the business of manufacturing cigarettes (“the Goods”). In order to grow the business, the Respondent had launched a new sale scheme wherein additional 30 packs of cigarettes will be supplied on buying 100 packs without receiving any extra consideration and filed an advance ruling, before the AAR, Uttar Pradesh to ascertain the tax liability on the extra packs of goods where it was held that the no GST would be levied on extra packs. Aggrieved by the ruling, the Deputy Commissioner, CGST, and Central Excise (“the Appellant”) filed an appeal before the AAAR on the following grounds:
- Challenging the decision of AAR, wherein it was held that extra packs of cigarettes would not attract GST.
- Buy one get one free clause in the [Circular No. 92/11/2019-GST dated March 07, 2019- (Clarification regarding promotional scheme)] talks about only certain sections of trade and industry such as pharmaceutical companies, etc., and not about evasion prone commodity like cigarette and pan masala.
- The Respondent did not inform the Appellant that several alerts were issued against their firm by the department and that they are indulged in claiming refund of accumulated ITC obtained through fraudulent means.
Issues:
