FREE SAMPLE & REPLACEMENT IN WARRANTY PERIOD

[RAMNIRANJAN KANDOI]

FREE SAMPLE & REPLACEMENT IN WARRANTY PERIOD

GST PAYABLE OR NOT & WHAT RULE / SECTION IN GST

AI Summary

GST Not Applicable on Free Samples; Reverse Proportionate Input Tax Credit per Section 17(5)(h) of CGST Act 2017. A discussion on a forum addressed whether Goods and Services Tax (GST) applies to free samples and replacements during the warranty period. Participants clarified that GST is not applicable on the supply of free samples, but the proportionate input tax credit (ITC) must be reversed according to Section 17(5)(h) of the Central Goods and Services Tax (CGST) Act, 2017. Multiple contributors confirmed that while no tax is payable due to the zero value of supply, the ITC availed must be adjusted accordingly.