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

Input tax credit reversal for consumables used to produce exhibition samples hinges on whether they are treated as free samples.
Whether input tax credit on media and ink used to produce printed samples at an exhibition must be reversed depends on whether those consumables are treated as free samples (triggering ITC blockage) or as inputs consumed in a business demonstration (not requiring reversal); the debate highlights the illustrative nature of administrative circulars, the absence of a prescribed quantification methodology for reversal when inputs are used to manufacture items later disposed of, and the importance of contemporaneous documentation to mitigate assessment risk.