1. Ever wondered Being a seller what is the application of GST on such offers?

2. Whether Only on one Item GST is to charged or Both 50%-50%?

3. Whether both are provided for a single price?

4. Price of one is being charged and other is provided free?

5. What Rate it is to be taxed?

The Valuation of Such offer is governed by Section 15 , CGST Act , 2017

The Value of Supply shall the transaction value paid or payable for the said goods  , where the supplier and recipient are not related and price is the sole consideration for such transaction.

For Example

There are two goods offered in the offer  For a single price Rs. 2,711.00

Type Rate of Tax
Good A ( 12% )
Good B ( 18% )

The goods offer buy one get one free Price is Rs. 2,711.00  ( Exclusive of GST) Transaction value shall be Rs.2,711.00

The principle Rate  of taxation is Governed by Section 8  of CGST Act 2017 i.e Taxation of Composite or Mixed Supplies

Because Combination of Two or More Goods are Provided for A single Price.

i) Where it is a Composite Supply : Rate shall be of Principle Supply.

Lets say principle supply is Good A then Rate of Tax will be 12%

ii) Where it is a Mixed Supply : Rate shall be charged of that particular supply which attracts highest rate.

If it is not a composite supply ( ie Not naturally bundled ) rate shall be 18%

My fellow members kindly find the above in line and shed some light in case of inconsistency .

The author is a practicing Chartered Accountant and can be contacted at Email : [email protected]

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