The West Bengal Authority of Advance Ruling (AAR) ruled that GST payable on Supply of unconnected goods at a nominal price against the purchase of hosiery goods. The applicant, Kanahiya Realty Private Limited intends to manufacture and supply hosiery goods such as Vests, Briefs, etc. The applicant further proposes to implement a scheme with the objective of incentivizing its sale of hosiery goods amongst the retailers whereby it would offer unconnected goods for sale at a discounted price to such retailers who have bought a certain unit of hosiery product from it as would be prescribed in its retail scheme circular. However, the retailers will be at liberty not to purchase the goods offered under the said promotional schemes.
Source Taxscan
