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Companies eligible to claim GST input on promotional offers

The CBIC has clarified that promotional schemes offered by FMCG companies such as Buy One Get One (BOGO) and additional quantity for the same price will be eligible for input tax credit. Companies will neither be required to reverse the input credit on such supplies nor pay GST separately on the additional product unless it is a totally different one facing higher rate of tax. However, in respect of goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples, ITC shall not be available to the supplier on inputs, input services and capital goods. 

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