Free samples - Local\ Export

[Yatin Bhopi]

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:

1. Are we need to prepare invoice for suppling free samples in India.
2. In case of abroad customer are we need to follow export procedure?

[KASTURI SETHI]

Reply to both queries is as follows:-

Query No.1 Yes

No.2 Yes

[Ganeshan Kalyani]

The input tax credit proportionate to the free sample supplied need to be reversed. Free sample do not attract GST.

[KASTURI SETHI]

I agree with Sh.Ganeshan Kalyani, Ji. Invoice has to be prepared and export procedure has to be followed.

[Yatin Bhopi]

Thanks Sir

[KASTURI SETHI]

Sh.Kishan Barai Ji,. Sir,. Will you pl. Let me know under which law GST is applicable to Sample ? Any reference ?

[Kishan Barai]

Sorry Sir, it's typo error, I just forget to add No

[Kishan Barai]

if goods are Bellow 20 KG, provide it to courier company, they will follow all procedure like filling S/Bill and all, you don't need to follow any procedure if goods for sample sent for Exports, & NO GST would be attracted on it

[KASTURI SETHI]

O. K.Sir. Doubt cleared.

.

[Yatin Bhopi]

Normaly samples range from 1kg to 250kg. Why you have mentioned sample below 20kg? what about more than 20kg sample

[Kishan Barai]

You can also send a sample of 250 via courier but it would be more costly, so better you do export procedure and send via IATA agent via air to save costing, for big sample you need to follow same export procedure like big cargoes.

Thank You

AI Summary

Free samples: invoice required, GST not leviable but input tax credit must be reversed; export samples follow export procedure. Issuance of an invoice is required for free samples; GST does not attach to the samples themselves but the supplier must reverse the proportionate input tax credit. Exported samples should be handled under export procedures, with small consignments often sent via courier and larger samples exported through formal freight or IATA agents to ensure compliance.