goods sent for exhibition and get consumed during display

[ajay chharia]

A printer manufacturer participates in a exhibition and sent

1. Large format Printers,

2.Media(paper roll or canvass or cloth)

3.Inks. During display media and ink get consumed as printed samples on printers taken away by the visitors. He bring back the printer. Whether ITC on media and ink to be reversed or not ?

AI Summary

Debate on ITC Reversal for Printer Samples at Exhibitions Under Section 17(5)(h) of CGST Act Sparks Expert Opinions A printer manufacturer participated in an exhibition, sending large format printers, media, and inks. During the exhibition, the media and ink were consumed as printed samples, which visitors sometimes took away. The main query was whether the Input Tax Credit (ITC) on these consumed items should be reversed under Section 17(5)(h) of the CGST Act, which addresses goods given as free samples. Opinions varied: some experts argued for ITC reversal, citing the goods as free samples, while others disagreed, viewing the activity as integral to business operations and not subject to ITC reversal. The discussion emphasized the need for professional advice and careful documentation.