Samples to Customers

[JOHN SHANNEL]

Hello experts,

My industry is a fashion industry. We make products and send one sample to our distributors for them to see the product and give us orders.

The sample sent to distributors are considered as supply? Do i have to raise GST invoice. Please help to clarify.

AI Summary

Fashion Industry: Product Samples Not a Supply Under GST, Use Delivery Challan per Rule 55, CGST Rules 2017. A fashion industry representative inquires about whether sending product samples to distributors constitutes a supply under GST, requiring an invoice. Experts clarify that samples are not considered a supply and should be moved using a delivery challan per Rule 55 of the CGST Rules, 2017, not a tax invoice. Additionally, the issue of Input Tax Credit (ITC) reversal is discussed, with advice to check if the sample cost is included in the order price, which would negate the need for ITC reversal. For interstate movement, a delivery challan and E-way bill are recommended.