TaxTMI 
TaxTMI 
Sir, export of goods as samples. we will not receive funds for this sample sent! how to show the same in GSTR-1 and for Income tax?
Export Sales-samples
01 Sep 2022 
6 Replies 
8554 Views Asked by
GST treatment of free export samples hinges on whether the transfer is a supply, affecting invoicing and credit.
GST treatment of exported samples depends on whether the transfer is a supply. One view requires payment of GST and reporting as zero-rated supply with payment in GSTR 1 without claiming refund when no proceeds are received; another view holds that genuine free samples are not a supply, so tax invoice issuance, GSTR 1 disclosure and outward supply liability do not arise. Transportation/invoice and e way bill rules may apply, input tax credit is disallowed for goods disposed as free samples, and factual circumstances determine the correct treatment. (AI Summary)
GST treatment of exported samples depends on whether the transfer is a supply. One view requires payment of GST and reporting as zero-rated supply with payment in GSTR 1 without claiming refund when no proceeds are received; another view holds that genuine free samples are not a supply, so tax invoice issuance, GSTR 1 disclosure and outward supply liability do not arise. Transportation/invoice and e way bill rules may apply, input tax credit is disallowed for goods disposed as free samples, and factual circumstances determine the correct treatment. (AI Summary)