Law Legends


GST on buy one get one free offer

Circular No. 92/11/2019- GST dated 7th March 2019 clarify GST applicability on GST on buy one get one free offer.

Interpretation: As per sub-clause (a) of sub-section (1) of section 7 of the CGST Act, the goods or services which are supplied free of cost (without any consideration) shall not be treated as supply under GST (except in case of activities mentioned in Schedule I of the said Act).

At first glance, it might seem that offers such as "Buy One, Get One Free" involve giving away one item at no cost, without any exchange. However, in reality, it doesn't constitute a single supply of free goods. Instead, it involves two or more separate supplies bundled together under a single price. This arrangement can be best described as providing two goods for the price of one.

Taxability: The tax treatment of this supply depends on whether it qualifies as a composite supply or a mixed supply. The applicable tax rate will be determined in accordance with the provisions outlined in section 8 (Tax liability on composite and mixed supplies) of the CGST Act.

Availability of ITC: It is also clarified that ITC shall be available to the supplier for the inputs, input services and capital goods used in relation to supply of goods or services or both as part of such offers.

Disclaimer:-The information available on this website/ App is solely for informational purposes. We make no representation or warranties of any kind, express or implied about the accuracy, reliability, with respect to information and material or video available on website/APP, any reliance you place on such information is therefore strictly at your own risk. We are not liable for any consequence of any action taken by you relying on the material/information provided on this website.
error: Content is protected !!
Open chat
Raise A Query
Hello 👋
Can we help you?

    Please Subscribe from Law Legends Application
    and download the App from

    Thanks For Visiting Us!