GST on Diwali gifts: Companies could see implications on gifts doled out to customers, retailers

A recent ruling by the Authority for Advance Rulings (AAR) has held that  GST  will have to be paid on the products that are being given off as free gifts by companies.  The ruling said that supply of goods such as gold coins, refrigerators or air conditioners under promotional schemes should be treated as normal supply and GST should be levied on the whole amount.  Often compa…