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

Free sample not a supply; use delivery challan and e way bill; check ITC reversal under applicable rule for distributors.
Free product samples sent to distributors are not a supply and do not require a tax invoice; movement should be recorded by a delivery challan. For inter state transport, a delivery challan and an e way bill are recommended. Input tax credit may need to be reversed or restricted for promotional free samples unless the supplier shows the sample cost is absorbed in the sale price, in which case ITC reversal may not be required.