#FMCG Products dealers and Distributors

[gofordistributors]

Food and Beverage distributorship offers lucrative business opportunities. With the rising demand for quality food products, becoming a distributor can be rewarding. Go4Distributors is a platform that connects businesses with potential dealers and distributors in India. Their efficient system helps in appointing reliable partners, streamlining the distribution process, and expanding market reach for Food and Beverage products.

Contact:- +918800922392 Mail:- Support@go4distributors.com Facebook:- https://www.facebook.com/go4distributors Twitter:- https://twitter.com/go4distributors

[xenmagmarketing]

New Product Distribution Opportunities: Unlocking Growth with Distributor Bazaar

The fast-paced and competitive world of business demands constant innovation and strategic expansion. For manufacturers, suppliers, and entrepreneurs, identifying new product distribution opportunities can be the golden ticket to scaling operations and reaching untapped markets. With platforms like Distributor Bazaar, bridging the gap between distributors and brands has never been easier.

This blog explores the significance of new product distribution opportunities, how Distributor Bazaar facilitates this process, and strategies to maximize your success.

Understanding Product Distribution Opportunities

Product distribution opportunities refer to chances for businesses to introduce their products to new regions, demographics, or retail platforms. These opportunities often arise from evolving market trends, innovative products, or untapped demand.

Why Distribution Matters

Distribution is the backbone of the supply chain. It ensures that your products reach the right audience, at the right time, and in the most efficient way possible. Successful distribution leads to:

Increased Revenue: Expanding into new territories or sectors can significantly boost sales.

Brand Visibility: Getting your product into more stores or online platforms helps establish a strong market presence.

Market Adaptability: Leveraging new product distribution opportunities allows brands to stay ahead of trends and consumer demands.

Emerging Trends Driving Distribution Opportunities

E-Commerce Growth Online marketplaces are becoming vital for product distribution. Companies are partnering with distributors to expand their reach to e-commerce giants like Amazon and Flipkart.

Sustainable Products Eco-friendly and sustainable products are gaining traction. Distributors specializing in this niche are in high demand.

Regional Expansion Localizing products for regional tastes and preferences creates new avenues for distribution, especially in a diverse market like India.

Technological Integration Smart distribution tools and digital platforms enable real-time tracking, inventory management, and seamless communication between distributors and suppliers.

How Distributor Bazaar Can Help You

Distributor Bazaar is a comprehensive platform designed to connect manufacturers with distributors and retailers. It provides an efficient way to explore new product distribution opportunities and build long-term partnerships.

Key Features of Distributor Bazaar

Wide Network of Distributors: Access to a database of distributors specializing in various industries, including FMCG, electronics, and healthcare.

User-Friendly Interface: Navigate through potential partners with ease, using filters for location, industry, and capacity.

Verified Distributors: Work with trusted distributors who meet high standards of reliability and professionalism.

Insights and Analytics: Get data-driven insights into market trends and distribution gaps to make informed decisions.

Distributor Bazaar serves as the ultimate partner for brands aiming to expand their reach without investing heavily in logistics and market research.

Strategies to Leverage New Distribution Opportunities

1. Identify Your Target Market

Before approaching distributors, define your ideal customer. Understand their preferences, pain points, and buying behaviors. This ensures your product aligns with their needs.

2. Analyze Market Trends

Use tools like Google Trends or insights from platforms like Distributor Bazaar to identify high-demand products and regions with untapped potential.

3. Build Strong Partnerships

Successful distribution relies on good relationships. Treat distributors as collaborators, providing them with resources, training, and marketing support to drive sales.

4. Focus on Regional Markets

Localized marketing strategies can open doors to new markets. Tailor your product packaging, branding, and promotional campaigns to align with regional preferences.

5. Leverage Technology

Integrate advanced tools such as CRM systems, inventory management software, and digital marketing to optimize your distribution network.

Real-Life Examples of Successful Distribution

Case Study 1: FMCG Product Expansion

A small-scale snacks manufacturer partnered with Distributor Bazaar to find regional distributors in South India. With targeted distribution, they tripled their sales within a year and established a loyal customer base.

Case Study 2: Eco-Friendly Products

A sustainable packaging company listed their offerings on Distributor Bazaar and connected with eco-conscious retailers. This collaboration helped them penetrate urban markets quickly.

Overcoming Challenges in Product Distribution

Finding the Right Partner Not every distributor will align with your goals. Platforms like Distributor Bazaar simplify this process by matching brands with verified distributors.

Logistics and Supply Chain Issues Ensure seamless delivery by working with distributors who have a robust logistics network.

Market Saturation Choose less competitive markets or niche sectors to reduce competition and increase visibility.

Regulatory Compliance Stay updated on tax laws, import/export regulations, and quality standards to avoid legal roadblocks.

Why Now is the Time to Act

The Indian distribution landscape is ripe with potential. Rising consumer demand, the growth of tier-2 and tier-3 cities, and evolving shopping habits present a wealth of opportunities for brands willing to expand their distribution network.

By leveraging the capabilities of Distributor Bazaar, businesses can effortlessly explore new product distribution opportunities and connect with the right partners to achieve their growth objectives.

Conclusion

New product distribution opportunities are the stepping stones to business growth and sustainability. With the right strategies and tools like Distributor Bazaar, your brand can overcome challenges, enter new markets, and create a lasting impact.

Are you ready to take the next step? Start exploring the possibilities today with Distributor Bazaar and unlock your brand’s full potential!

Call to Action Visit Distributor Bazaar today to connect with trusted distributors and grow your business. The future of distribution starts here!

[parisudham]

Looking for the best FMCG products distributor in Kerala? Look no further than Parisudham Oils. With a strong reputation and extensive experience in the FMCG industry, Parisudham Oils is the top choice for quality products and reliable distribution services in Kerala. Discover a wide range of superior FMCG products, including oils, spices, and more, all sourced from trusted suppliers. Trust Parisudham Oils as your preferred distributor for unmatched quality and customer satisfaction. Contact us today and experience excellence in FMCG distribution.

[databaseproviderindia]

B2B Database Provider Company in India

77 Data is the leading database provider company in India, that provides you with all India database cities and states. It provides all kinds of databases like B2B databases, business and industry databases and also provides international databases for many other countries.  

It is a very trusted B2B database company in India, that provides you 70% to 80% accurate database. The database contains mobile numbers, emails, website, company name, services and product details in Excel Format. 77Data provides a database for all types of manufacturers, Importers, Manufacturers, Distributors, Dealers, Suppliers, Retailers, Traders, Service Providers, Consultants and many more.

Choose 77Data for your database, 77Data is one of the best b2b database provider companies, It provides you with all types of databases such as business databases, industry databases, b2b databases, corporate companies, intentional, importers and exporters, dealers, distributors, consultants, retailers, SME companies, FMCG, MSME and many more types of database provided by 77Data for more information call on 8882956467 and visit our website.

[ds7799074]

DEALER AND DISTRIBUTOR PROVIDER IN INDIA

Dealerbanao.com boasts a vast network of verified manufacturers from various sectors. We ensure that you can find reputable partners whether you're looking for Health & Medicare products, locks, furniture, FMCG items, electric vehicles, electrical equipment, modular kitchens, technology and machinery, building panels, astrology services, paint, or cosmetics. Our platform makes it easy to discover and connect with the right manufacturers for your business needs.

For more detail visit: https://dealerbanao.com/

[77datasblog]

77 Data Emerged As Largest Database Provider In India

77 Data DelhiInfo @77data.net8882956467Nov.22, 2023FOR IMMEDIATE RELEASESUB: 77 Data Emerged As Largest Database Provider In India77 Data, a trusted platform for B2B databases is excited to announce that it has gained prominence as the largest database provider in India. With a wide assortment of business and industrial data in Excel format, it has become a  go-to source for businesses looking for reliable and high-quality databases. The platform is leading with 650+ data titles that cover a diverse array of sectors and industries like healthcare, automotive, FMCG, logistics, printing, construction, machinery, etc. 77 Data is a valuable source for businesses looking to increase the marketing and branding of their products and services. They can easily contact targeted business entities as 77 Data’s companies database includes company name, website address, email, contact number, city/ state, Pincode, etc.“We take immense pride in naming ourselves the largest B2B database provider,” said Data Expert, 77 Data. “To attain the milestones, our team contributed tremendously as they worked diligently to help customers. We are in high esteem that 77 Data is empowering businesses towards fruitful outcomes.”Over the 12 years, it has catered to manufacturers, importers, exporters, distributors, traders and dealers with the best companies lists to grow more leads and thus generate more revenues. Businesses that have seen considerable growth availed 77 Data’s verified B2B database. Being the biggest marketing and data solution, they collect data from verified sources so that the clients get an error-free database. 77 Data’s database is updated and has high accuracy of companies including LTD, PVT LTD, MSMEs, SMEs, Government and semi-government, and many others. 77 Data is not just helping businesses generate more leads but staying ahead with proper market research and gaining useful insights. They avail user-friendly interface to search and buy the right database that fits their business needs. Clients can receive expert assistance from the company's help desk to help them choose the right database for their needs.For more inquiries and assistance, you can visit www.77data.net  or connect with its data consultants team.Media Contact77 Datainfo@77data.net

[vishalmishra]

Food and Beverage Distributorship Opportunity

Appoint Distributors offers Food and Beverage distributorship opportunity in pan India. Get here manufacturers, Wholesale dealers, distributors of FMCG Products distributors, Indian Food dealers, Natural Foods & Food Ingredients distribution.

[distributorschannel]

Are you looking for FMCG product distributorship opportunities in Delhi? Distributors Channel Offers FMCG Products Distributorship Opportunities for interested distributors, dealers, and wholesalers at a very low amount of investment. If you want to become a Distributor of Top FMCG Brands in India you can contact us. Submit your requirement and grab this business opportunity, with a high-profit margin.

[lyndataindia]

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We began offering our services in 2018 with a vision to deliver pure & natural products to our customers. The company continues to offer different ranges of products of premium quality at a very affordable price."

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[gofordistributors]

The food and beverage industry is a thriving and dynamic sector, constantly evolving to meet the demands of consumers. With a growing population and increasing disposable incomes, the demand for food and beverages is only expected to rise. This presents an excellent opportunity for individuals or businesses looking to enter the market as distributors. Becoming a Food and Beverage Distributor offers numerous benefits, including financial rewards, flexibility, and the opportunity to work with a diverse range of products.

Contact:-  +918800922392  Mail:- Support@go4distributors.com  Facebook:- https://www.facebook.com/go4distributors  Twitter:- https://twitter.com/go4distributors

[zylem2020]

Why Do You Need a Distribution Management System for Your Brand

In the context of the distribution of completed goods, the distribution management system (DMS) is concerned with the phases in the supply chain that correspond to the distribution of finished goods. Manufacturing, packaging, inventory management, warehousing, and transportation facilities are some of the steps involved.

 To effectively manage the whole supply chain and meet the needs of consumers, distribution management software in India has become essential in recent years. It assists firms in tracking secondary sales all the way up to the point of sale, allowing them to simplify important components of their channel sales, such as faster stock replenishment, lower inventory carrying costs, and improved production planning.

 Let's take a look at the benefits of using a Distribution Management System. While the number of explanations and benefits is likely to be unlimited, we have compiled a list of the most significant ones:

 1.     Visibility in real-time

 The need for clarity on real-time visibility of all business data from your distribution networks is critical for you as an FMCG firm. Without a DMS, you will be forced to rely on offline data provided by your distributors at a predetermined frequency, which is neither real-time nor legitimate and will result in increased costs. However, you should not make any compromises on some of the most important facts, such as the amount of current stock available with distributors, the number of orders pending fulfillment, the number of orders being returned by retailers, and so on. As a result, a distribution management system is essential for effectively managing your distribution.

 2.     Remote location monitoring

 With India's rapidly increasing revenue growth, companies are expanding their distribution networks to practically all of the country's districts in order to expedite the flow of products from the manufacturing facility to the retailer. Because of the difficulties associated with huge volumes, time management, and the geographical isolation of the vendor, it might be difficult to have complete information on your product movement from all of your partners at times. It is possible to have all of the data at your fingertips if you have distribution management software in place, even if a dealer is operating from a remote location.

 3.     A significant benefit for your distributors

 It is true that establishing a DMS is a solution that is quite beneficial in terms of streamlining and automating a large number of their daily procedures. Automation of all types of products movement, system-generated invoicing, details of pending payments, and intelligent warnings are just a few instances of how the program will make a distributor's job easier.

 4.     Claim settlements are more expedient

 Your distributors will also profit from the DMS because of the faster turnaround time for distributor claim management that they will experience. Return schemes, damaged receipts, and everything else that can be automated by DMS will ensure that distributors and the company are always in the know regarding deliverables and payables. Furthermore, with online claim filing through DMSS, all claims will be finalized considerably faster than with a manual approach, which typically consists of several rounds of adjustments between the two parties.

 5.     Efficient promotion and scheme management

 Promotion and incentive programs are two of the most important cornerstones of every business. Companies typically invest a significant amount of money in these kinds of endeavors. The distribution management system guarantees all essential checks and balances at the time of invoicing and that you have a comprehensive understanding of the performance of each and every scheme.

 6.     Rapid Restocking

 It goes without saying that it is critical for companies to maintain optimal stock levels at various touch-points, including stockists, distributors, retailers, and other distribution channels. Well, DMS provides you with complete visibility into your inventory, including stock levels, expiration dates, batch numbers, returns, and more. It is possible to obtain major alterations and supply replenishment at distributor sites far earlier than in the past.

 7.     A well-planned production schedule

 In an ideal scenario, your distribution management system (DMS) would be coupled with the demand planning module of your enterprise resource planning system. Following that, the production planning engine of your ERP will have clear information on the real-time stock level, pending orders for fulfillment at your distribution locations, and a variety of other factors. With this, you may be confident in superior production planning, which will result in less or no waste of your production resources.

 Conclusion:

A significant amount of time and money may be saved by implementing the software, which is beneficial to the growth and profitability of your firm. Even small- and medium-sized businesses (SMEs) should invest in distribution management software in order to run their operations smoothly and reap significant rewards.

[parisudham]

Are you searching for the best FMCG products distributor in Kerala? Look no further than Parisudham Oils. With our extensive range of high-quality FMCG products, we have established ourselves as a trusted and reliable distributor in the region. Whether you need cooking oils, spices, or other essential food products, we have got you covered.

At Parisudham Oils, we understand the importance of delivering products that meet the highest standards of quality and freshness. Our team is dedicated to sourcing the finest ingredients and ensuring that our products are processed and packaged with utmost care.

As the leading FMCG products distributor in Kerala, we take pride in our wide network and efficient distribution channels. We ensure timely delivery to our customers, ensuring that they receive their orders promptly and in perfect condition.

Customer satisfaction is our top priority, and we strive to exceed expectations by offering competitive pricing and excellent customer service. Our knowledgeable staff is always ready to assist you with any queries or product-related information.

When it comes to FMCG products, trust Parisudham Oils as your go-to distributor in Kerala. Experience the difference of working with the best. Contact us today to discuss your requirements and let us serve you with the finest FMCG products available.

[121keto]

Fruit Plant Nurseries, Motor Repair & Services, Agarbatti Manufacturers, FMCG Distributors, Allopathic Medicine Distributors, Agricultural Fertilizer Dealers, Allopathic Doctors, Sewing Machine Dealers-Singer, Handloom Saree Manufacturers, Auto Service Centre, Cotton Cloth Retailers, Petrol Pumps-Indian Oil, Fax Services, Sewing Machine Part Dealers, Gastroenterologists, Food Product Retailers, Mobile Phone Memory Card Dealers, Truck Repair & Services-Ashok Leyland, Forging Job Work, Allopathic Medicine Wholesalers, Sanitaryware Dealers-Hindware, ICSE Books, Gents Readymade Garment Retailers, Plastic Furniture Dealers, Furnitures On Hire, Household Appliance Dealers, Egg Retailers, Computer Software Developers For Business Accounting, Sherwani Retailers, Tractor Spare Part Dealers, Water Pump Spare Part Dealers in city birbhum

[astuteinsights]

Machine Tools Market 2021 report explores the future trends, top companies development and forecasts

Astute Analytica's recent study on the Machine Tools Market provides a comprehensive review of the industry from 2021-2027.

In 2020, the global Machine Tools Market valued at 69,855.2 MN. The market is forecast to grow at a CAGR of 4.7% during the forecast period from 2021-2027.

This report includes an assessment of different factors that fuel the market's expansion. The market is transformed by trends, restraints, and drivers both positively and negatively as they affect the market. Additionally, this section provides a scope of the market by segment and application, which can potentially influence it in the future. This detailed information was compiled by analyzing current trends and historical milestones

In the report, a detailed assessment of the restraints can be compared to their drivers and could be used to plan strategic activities. To grasp and benefit from the lucrative opportunities that are present in the ever-growing market, that need to understand the factors that impede the growth of the market. In addition, market experts' opinions were taken into consideration to gain a deeper understanding of the market.

An in-depth analysis is given of overall Machine Tools Market growth prospects in this market study covering both the global and regional markets. The study also sheds light on the complete competitive landscape of the global Machine Tools Market. In addition, the report provides a dashboard overview of leading companies regarding their marketing strategies, market contributions, and recent developments in both historic and present contexts.

It is important to consider a variety of factors when researching the market, from demographics and business cycles to microeconomic impacts specific to each country, the study found that market paradigms have evolved in terms of competitive advantage of regions and therefore major players' competitive landscape. Analysis of downstream demand and administration of upstream raw materials and equipment. In addition to providing key statistics on the state of the industry, this research also provides key guidance and direction for companies and individual market participants.

Covid-19 Impact on the Global Machine Tools Market

Health problems have been reported in nearly every country due to the Covid-19 virus that was discovered in December. It has been declared a public health emergency by the World Health Organization. Coronavirus disease (Covid-19) is already having a significant global impact on the keyword market, and this trend will continue into 2021. There have been more than 40 declarations of states of emergency because of Covid-19. The result has been canceled flights, travel bans, restaurants closing, events restricted, business confidence declining, and uncertainty about the future.

Regional Analysis: The Global Machine Tools Market

A total of five regions were covered in the report: Asia Pacific, Europe, North America, Middle East & Africa, and South America. In this report, the United States, Germany, the United Kingdom, Japan, China, India, the United Arab Emirates, South Korea, South Africa, and Brazil are examined at the country level. The regional and country-level analyses in this report demonstrate the dynamic nature of some segments of the market, and how they differ from others.

Get our sample copy of the Global Machine Tools Market report that offers a brief introduction of the Machine Tools industry, key players of the market, list of tables and figures and key countries & regions; Click:- https://www.astuteanalytica.com/request-sample/machine-tools-market

Key Players: The Global Machine Tools Market

In this report, an overview is provided of some of the market's most prominent players. The purpose of this study is to explore the importance of collaboration at competitive levels in foreign markets. 

The prominent players in the Global Machine Tools Market are: 

●        Ace Micromatic Group

●        Amada Company Ltd.

●        Chiron Group

●        Dalian Machine Tool Group Corporation

●        DMG Mori

●        Doosan Machine Tools

●        Electronica Hitech Engineering Pvt Ltd.

●        FFG European and African Holdings GmbH

●        Georg Fischer Ltd.

●        Gleason Corporation

●        Grob-Werke GmbH & co. KG

●        Haas automation Inc.

●        Hyundai Wia

●        Kg Hahn & Tessky

●        Jtekt Corporation

●        Komatsu Ltd.

●        Makino

●        Okuma Corporation

●        Spinner Machine Tools

●        Trumpf

●        Yamazaki Mazak Corporation

●        Other Prominent Players

Aim of the Report: The Global Machine Tools Market

The global Machine Tools Market is segmented based on By Product, By Automation Type, By Industry, By Sales Channel.

By Product: 

·  Milling Machine

·  Lathe Machine

·  Laser Machine

·  Drilling Machine

·  Turning Machine

·  Grinding Machine

·  Electrical Discharge Machine

·  Machining Centers

By Automation Type:

·  CNC Machine Tools

·  Conventional Machine Tools

By Industry:

·  Automotive

·  Aerospace and Defense

·  Construction Equipment

·  Power and Energy

·  Industrial

·  Others

By Sales Channel:

·  Dealers and Distributors

·  Events and Exhibitions

Browse Some More Reports in Industrial & Heavy Machinery industry:

Automated Guided Vehicle Market is expected to see the addition of more than 80 MN units by 2027

Equipment-as-a-Service Market is expected to show an impressive growth rate between 2021 to 2027

About Astute Analytica:

Astute Analytica is a global analytics and advisory company that has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in-depth, and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the globe.

They are able to make well-calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment-wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of the best cost-effective, value-added package from us, should you decide to engage with us.

Get in touch with us:

Phone number: +18884296757

Email: sales@astuteanalytica.com

Visit our website: https://www.astuteanalytica.com/

Content source: https://www.astuteanalytica.com/industry-report/machine-tools-market

SOURCE Astute Analytica

[siya123sharma]

Impact of GST on Sales Promotion schemes

Applicability and Impact of Goods and Services Tax (‘GST’) on sale promotion schemes has always been a contention of litigation since the start of GST.

Every business has a marketing and sales plan in order to increase sales volume, attract new customers, and achieve its business objectives.  Sales promotion schemes are the key drivers to supplement, co-ordinate, and achieve functional objectives.

With a diverse collection of incentive and innovative ideas, sale promotion schemes stimulate consumer purchasing behaviour.

However the problems and many industries related issues arises due to the provision contain in section 17(5)(h) of CGST Act 2017.

As per sec 17(5)(h), business cannot take input tax credits in respect of goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples.

Accordingly, inputs tax credit over such goods which is used or disposed of by the way of gift or free sample should be reversed.

This created all of question for the business and all the sales promotion scheme comes under the scanner.

In order to put the issue to rest, the Central Board of Indirect Taxes and Customs (‘CBIC’) has issued Circular No. 92/11/2019-GST dated 7 March 2019.

The Circular contains clarifications on the impact of GST on sales promotion schemes and provide clarification on Impact of GST various type of sales promotion scheme.

The Circular has clarified several grey areas in the GST law and has brought a much needed certainty in GST treatment on sales promotion schemes.

The summary of the Circular is given below:

1. Treatment of Free Samples and Gifts under GST

Businesses distribute free samples of their products to various stakeholders in the supply chain.  Similarly, businesses may gift their products to employees, customers, vendors and well-wishers.

These activities are recorded as a cost to the business by reducing the value from the inventory recorded in books.

The treatment of Free Samples and Gifts under GST is summarised below:

1.1 Free Samples and Gifts will not be treated as supply:

Under Section 7(1)(a) of the Central Goods and Services Act, 2017 (‘CGST Act’), supply includes any transaction undertaken for consideration.

Therefore, any items supplied without any consideration would not qualify as “supplies” under the GST law, except when the activity falls within the ambit of Schedule I of the CGST Act.

In business parlance, Free Samples and Gifts are supplied free of cost (without any consideration). Hence, they will not be considered as supplies under GST law.

1.2 Input tax credit to be reversed on goods distributed as Free Samples and Gifts:

As per Section 17(5)(h) of the CGST Act, Input Tax Credit (‘ITC’) available  on inputs, ITC shall not be available in respect of goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples.

Hence, taxpayers should reverse the ITC to the extent of inputs used in relation to Free Samples and Gifts.

However, ITC would be available if Free Samples and Gifts are used in relation to activities mentioned in Schedule I of CGST Act.

2. Treatment of Buy One Get One Free offer under GST

Businesses may bundle one or more products for sale along with a given product. The cost of the other product is not separately charged to customers but is termed as a free item.  This is generally referred to as Buy One Get One Free offer.

The treatment of Buy One Get One Free offer schemes under GST is summarised below:

2.1     Goods supplied under buy one get one offer will be treated as supply:

From a consumer standpoint, the transaction may appear to be supply one good ‘free of cost’ without any consideration.

However, from a business perspective, the transaction should be considered as supply of two goods at the same price marked on the product; and should not be considered as an individual supply of free goods.

On similar lines, the transaction will be classified as supply of two goods for the price of one under GST.

2.2 Taxability of Goods supplied under buy one get one offers under GST:

In case of supply of more than one goods, the GST law provides for taxability of the transaction depending on the nature of supplies and transaction.

The transaction could be classified either as a mixed supply or composite supply as per Section 8 of the CGST Act.

2.2.1 Taxability as per Composite supply:

Under the GST law, composite supply involves a supply comprising of two or more goods/services, which are naturally bundled and supplied with each other in the ordinary course of business.

The supplies are generally sold together as they are inextricably connected to each other. One of the supply in the transaction would be the principal supply.

GST tax rate for composite supply: In case of composite supply, the GST rate for the principal supply shall be considered

2.2.2 Mixed supply:

Under the GST law, mixed supply involves supply of a combination of two or more goods/ services made together for a single price. Each of these items could be sold separately and they are not dependent on each other.

GST Rate for mixed supply: In case of mixed supply, the GST rate for the supply attracting highest GST rate shall be considered

2.3 Availability of ITC in case of buy one and get one offers under GST

ITC would be available on goods supplied under Buy One Get One Free schemes.

Hence provision of section 17(5)(h) would not applicable in case of buy one get one offers. Input tax credit on such supplies will not be reversed.

3. Treatment of Volume Discounts (‘Buy more, save more’ offers) under GST

In order to incentivise distributors and dealers for increasing the sales volume, businesses offer discounts based on targets, quantity, value, volumes etc. as volume discounts.

For example-

Get 10 % discount for purchases above Rs. 5000/-,

20% discount for purchases above Rs. 10,000/- and

30% discount for purchases above Rs. 20,000/-.

Such discounts are shown on the invoice itself

Discounts including Buy more, save more etc. may be provided at the point of supply or at a later date pursuant to prior agreement(s).

Discounts provided at the point of sale are shown as a reduction the invoice itself. Discounts provided subsequent to sale are passed through credit notes.

The treatment of volume discounts under GST is summarised below:

3.1 Discount provided at the point of supply

Any discount provided at the point of supply shall be excluded from the value of supply.  The discount shall be excluded from GST if the conditions prescribed in Section 15(3) of CSGT Act are satisfied.

Hence, GST would not be applicable through the discount offered in the invoice.

3.2 Discount provided after the point of supply:

Any discount provided through a credit note subsequent to the point of supply shall also be excluded from the value of supply, as per Section 15(3) of CGST Act.

In such case, the recipient shall reverse the ITC claimed earlier based on the credit note issued by seller.

3.3 Availability of ITC on volume discounts under GST

ITC would be available on goods supplied and no reversal of ITC would be required.

4. Treatment of Secondary Discounts under GST

In certain situations, additional discounts are offered subsequent to sale of goods. The discount may be on account of revaluation in the price of goods, return of goods or any deficiencies in goods etc.

These discounts are known as secondary discounts or post-sale discount.  These discounts are passed through credit notes.

The treatment of secondary discounts under GST is summarised below:

4.1 Credit note at the point of supply

As per Section 34(1) of CGST Act, credit notes should be issued only in case of any commercial transaction.

Any secondary discount provided subsequent to the point of supply shall not be excluded from the value of supply.

Hence, GST would apply even on the ‘discounted portion’ of supply.

4.2 Credit note subsequent to the point of supply

However, if the conditions prescribed in Section 15(3)(b) of CGST Act are fulfilled, the GST on the discount portion may be reversed by issuing a credit note.

In such case, the recipient shall reverse the ITC claimed earlier based on the credit note issued by seller.

4.3 Availability of ITC on discount provided after sales under GST

ITC would be available on goods supplied and no reversal of ITC would be required.

Conclusion

These clarifications by the CBIC on sales promotion scheme under GST are a welcome move and provides clarity to several sectors.

The pharmaceuticals and the Fast Moving Consumer Goods (‘FMCG’) sectors predominantly deploy the aforementioned sales promotion schemes.

This Circular brings a lot of certainty in the GST treatment of sales promotion schemes.

Taxpayers may evaluate the treatment of GST based on their specific facts.

Read more about GST Amendment Act, 2018 & Its Impact: 20 Major Changes

Read more on Annual return under GST – Requirements, Eligibility, Format and Rules

Read for more - https://vjmglobal.com/gst/gstupdate/page/2/