We are manufacturer and registered under GST. We required to give free samples of our chemicals to the customer to get order. Earlier we used to pay excise duty on the free samples clearance even though its without consideration. We are also send chemical samples to abroad customer following export procedure.
Please let me know the following:
- Are we need to prepare invoice for suppling free samples in India.
- In case of abroad customer are we need to follow export procedure?
GST Rules for Free Sample Supply: Invoice for Domestic, Export Procedures for International, Reverse Input Tax Credit A manufacturer registered under GST inquires about the invoicing and export procedures for supplying free chemical samples domestically and internationally. Responses indicate that invoices must be prepared for domestic samples and export procedures must be followed for international shipments. It is noted that while free samples do not attract GST, the input tax credit proportionate to these samples must be reversed. There is a discussion on the logistics of sending samples, with suggestions to use courier services for smaller samples and IATA agents for larger ones to optimize costs. (AI Summary)
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