Question 1: Whether advertising and communication material (banners / hoardings / posters) provided to distributors would be treated as supply in the course of business by the company thereby not requiring any reversal of ITC under GST Act .
(a) Where the material is provided free of cost:
This would not amount to a supply and hence no tax is payable on such transaction and in such a case credit availed by the company would need to be reversed in
accordance with section 17(5) of the CGST Act, 2017.
(b) Where the material is provided for a consideration: This would amount to a normal supply.
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