Breif Issue :

Facts &Issue Of The Case:

The applicant is a dealer in electrical goods, cables of all kinds including winding wires, pipes etc. They had supplied electrical items to Kerala State Electricity Board through their distibutors spread across the State in connection with reinstating connectivity in the flood ridden areas as part of the “mission reconnect”. The applicant sought advance ruling on the following issues:

i) Determination of GST liability with respect to goods provided free of cost by the Distributors ofPoly Cab Wires Private Limited to KSEB for reinstating connectivity in flood ridden areas; and ‘admissibility of input tax credit in relation to such goods.

ii) Applicability of Sec.17( 5) of CGST Act, 2018 on CSR expenses.

In order to operationalize the commitment of the applicant to provide goods at free of cost to Kerala State Electricity Board for flood renovation work, the applicant instructed its distributors to provide the goods.The distributors billed the goods to Kerala State Electricity Board and paid GST to Government. In the invoice so issued, the distributor had valued the goods for the purpose of tax and value was shown as discount. In this supply, since the consideration is not wholly in money, Rule 27 of the CGST/KSGST Rules would apply for valuation. After the goods are supplied to Kerala State Electricity Board, distributor would raise claim to the applicant who will reimburse the value to the distributor.