TaxTMI 
TaxTMI 
FREE SAMPLE & REPLACEMENT IN WARRANTY PERIOD
GST PAYABLE OR NOT & WHAT RULE / SECTION IN GST
FREE SAMPLE & REPLACEMENT IN WARRANTY PERIOD
27 Apr 2018 
6 Replies 
1683 Views Asked by
Input tax credit reversal required where goods are supplied free as samples or warranty replacements; GST not payable on zero valued supply.
Free samples and warranty replacements are treated as zero valued supplies for GST, so no tax is payable on the outward supply, but any input tax credit claimed in respect of those goods must be proportionately reversed under the ITC reversal mechanism to reflect the free supply. (AI Summary)
Free samples and warranty replacements are treated as zero valued supplies for GST, so no tax is payable on the outward supply, but any input tax credit claimed in respect of those goods must be proportionately reversed under the ITC reversal mechanism to reflect the free supply. (AI Summary)