Free Supply Under GST Explained | Schedule I & Rule 28 | Gifts to Related Persons Taxable

Описание: Many taxpayers believe that free supply of goods does not attract GST.
However, this is a common misconception under GST law.

Under the CGST Act, certain transactions are treated as taxable supplies even without consideration, and this is where Schedule I becomes crucial.

🔹 What this video explains:

✔ When free supply of goods becomes taxable under GST
✔ How Schedule I treats supplies to related persons and distinct persons
✔ GST implications on gifts given from business stock
✔ Taxability of permanent transfer or disposal of business assets where ITC was claimed
✔ How to determine value under Rule 28 of the CGST Rules
✔ Meaning of open market value for GST valuation
✔ Why Rule 27 does not apply when consideration is nil
✔ When Rule 30 (cost + 10%) can be used

🔹 Key Legal Takeaway:

If goods are supplied free of cost from business stock, especially to related persons, GST liability may arise even when no money is charged. Once Schedule I applies, valuation must be done strictly under Rule 28, and GST is payable on the open market value.

Understanding this concept is essential to avoid:
❌ GST notices
❌ Audit objections
❌ Wrong valuation
❌ Penalties and interest

📌 Disclaimer: This video is for educational purposes only and does not constitute professional advice. Facts and applicability may vary case to case.

👉 Watch till the end for a complete and practical explanation of free supply under GST.

🔎 Optional YouTube Tags

Free supply under GST, Schedule I GST, GST on free gifts, Rule 28 GST valuation, GST related persons, GST valuation rules, CGST Act Schedule I, GST ITC on free supply

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