GST: How does the anti-profiteering law work under the new tax regime?

Govt is yet to release norms regarding various aspects relating to the anti-profiteering provisions

I have certain queries regarding supply of goods. In our case, we normally give quantity against quantity offer: Say, if you buy 100 boxes of product A, then you will get one box of product B.

How should we present the free quantity supply on the tax invoice? Should we show the product price and then give 100 per cent discounts with zero taxable value, so that product value becomes zero or we don’t need to show product price in the tax invoice? Which is the best way?
 

Is it necessary to mention any scheme numbers on the tax invoice and state that “under a particular scheme, we are dispatching free quantity” or simply present “as free quantity supply under a particular scheme”, and after that mention the product name and quantity we are going to deliver to our customer?

In the illustration you provided, either of the methods to indicate free supply on the invoice should be fine from the goods and services tax (GST) perspective, as you should be required to pay the tax only on the taxable value charged from the customer.   

Also, the government through its ‘FAQ tweets’ has clarified a supplier can issue a single invoice for supply of taxable as well as exempted/non-taxable goods.  Therefore, in your illustration, you should be able to issue a single invoice for supply of product A and product B.   

How does the anti-profiteering law work under the GST regime? Can you help me understand if there are any rules on valuations? 
 

According to the GST law, every registered taxable person is mandatorily required to pass on the benefit of any reduction in rate of tax and/or increase in input tax credit to the customer, by way of reduction in price of the goods/services supplied.  The government is yet to release clear guidelines regarding various aspects relating to the anti-profiteering provisions (including those relating to valuation). 
 

The government has proposed to establish an authority which would be empowered to examine whether a supplier has actually passed on the benefit of reduction in tax rate/increase in input tax credit to the customer.  In this regard, the government has recently released anti-profiteering rules, which lay down the provisions governing the functioning of the authority.  

I run an event management business. We do events in different states. Will a single registration work for me? 
 

The government through ‘FAQ Tweets’ has clarified that in case of provision of event-related services, a supplier should be required to obtain GST registration in the state where the event is held only if such person supplies any services from such state.  Where the services are provided from a different state, the supplier can charge IGST, treating the location of event as the place of supply. 

Therefore, the need for you to obtain GST registration in the state where the event is held would need to be determined based on whether you supply any services from such state or not.
 

The writer is tax partner, PwC India. Aditya Khanna, associate director, PwC contributed to this column. The views expressed are experts’ own. Send your queries to yourmoney@bsmail.in