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GST bill may end the buy-one-get-one sale

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New Delhi: The popular buy-one-get-one free offer given by some firms as a promotional strategy to woo customers may come to an end if the GST bill passes. According to reports, the government could impose GST on free articles, which are given away with select purchases.

As per the GST norms, buyers will also have to pay tax on the article that comes free. This was confirmed by some tax experts when the government unveiled the law for stakeholder comments.

As per the norms, supplies specified in Schedule I, made without a consideration, are also liable to GST. This additional tax burden on what are supposed to be freebies will definitely impact sales.

Some tax experts said that the model law covers the supply of goods and/or services by a taxable person to another taxable or non-taxable person in the course or furtherance of business.

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