https://www.taxtmi.com/caselaws?id=778564 AAR held that issuance of demo items does not constitute disposal akin to "physicians' samples" under Section 7/17(5)(h) CGST. Demo units remain applicant's property, used solely for demonstrations, and no transfer of ownership occurs; GST "supply" arises only when items are scrapped and cleared on payment of tax. Consequently, Input Tax Credit on such demonstration goods is not required to be reversed, as they are used in the course of business to generate taxable sales and are materially distinct from free samples which attract ITC reversal. en-us Wed, 23 Jul 2025 00:00:00 +0530 Thu, 18 Sep 2025 08:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=778564 AAR held that issuance of demo items does not constitute disposal akin to "physicians' samples" under Section 7/17(5)(h) CGST. Demo units remain applicant's property, used solely for demonstrations, and no transfer of ownership occurs; GST "supply" arises only when items are scrapped and cleared on payment of tax. Consequently, Input Tax Credit on such demonstration goods is not required to be reversed, as they are used in the course of business to generate taxable sales and are materially distinct from free samples which attract ITC reversal. Case-Laws GST Wed, 23 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=778564