https://www.taxtmi.com/forum/issue?id=117281 Whether Input Tax Credit must be reversed on export of free trade samples where no foreign exchange is realised: free samples are commonly treated as disposals attracting ITC reversal, while counter arguments stress business purpose and distinguish samples from gifts. Practically, exporters should consider an EDF waiver when no foreign exchange is earned and recognise that export incentives may be affected. There is no statutory formula for reversal; practitioners typically reverse on an actual or proportionate basis using costing data, and may challenge reversal where credited inputs are not the goods exported as samples. en-us Tue, 15 Jun 2021 13:36:46 +0530 Thu, 23 Jan 2025 15:54:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=117281 Whether Input Tax Credit must be reversed on export of free trade samples where no foreign exchange is realised: free samples are commonly treated as disposals attracting ITC reversal, while counter arguments stress business purpose and distinguish samples from gifts. Practically, exporters should consider an EDF waiver when no foreign exchange is earned and recognise that export incentives may be affected. There is no statutory formula for reversal; practitioners typically reverse on an actual or proportionate basis using costing data, and may challenge reversal where credited inputs are not the goods exported as samples. Discussion-Forum GST Tue, 15 Jun 2021 13:36:46 +0530 https://www.taxtmi.com/forum/issue?id=117281