GST on sample supply

[Himansu Sekhar]

Sir,

Please clarify whether any GST will be leviable on sample supply. In my opinion it is not a supply as no consideration is involved even if it is related for furtherance of business. But credit has to be reversed.

Please clarify

Regards

[Rajagopalan Ranganathan]

Sir,

Schedule I of CGST Act, 2017 enumerates activities to be treated as supply even if made without consideration. This schedule does not include supply of free sample without consideration. Therefore, in my opinion, free samples are not liable to gst.

[DR.MARIAPPAN GOVINDARAJAN]

I agree with the conclusion of Shri Rajagopalan.

[Himansu Sekhar]

I also think on the same line. Thank you sir

[KASTURI SETHI]

I support views of all the experts.

[RadheyShyam Mangal]

See the implication of Section 17(5)(h) of CGST where the ITC is not allowed on goods disposed off by way of free samples.

AI Summary

Free sample supply: not a taxable supply under GST, but input tax credit must be reversed for disposed goods.
Free sample supply provided without consideration is not listed in Schedule I and therefore is not a taxable supply under GST; however, input tax credit claimed on goods disposed of as free samples is subject to reversal under the GST restrictions on ITC for disposed goods.