TaxTMI 
TaxTMI 
Samples to Customers
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....amples to Customers<br> Query (Issue) Started By: - JOHN SHANNEL Dated:- 30-9-2024 Last Reply Date:- 4-11-2024 Goods and Services Tax - GST<br>Got 10 Replies<br>GST<br>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 rai....
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....se GST invoice. Please help to clarify. Reply By Sadanand Bulbule: The Reply: Dear querist Please refer the comprehensive clarification issued under CBIC Circular No. 92/11/2019-GST dated 07/03/2019 for more details. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: It is not a supply. Reply By KASTURI SETHI: The Reply: It being not a supply, the movement of sample should be done on a deliver....
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....y challan under Rule 55 of CGST Rules, 2017 and NOT on a tax invoice. Reply By JOHN SHANNEL: The Reply: Dear experts, Thanks for taking time and clarifying. Reply By Shilpi Jain: The Reply: One aspect you would have to check is whether ITC reversal would be required as it is free sample. Or whether you can prove this to be a sample given whose cost is included in the agreed price for the order....
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....s? If yes, then ITC reversal would not be required. Reply By KALLESHAMURTHY MURTHY: The Reply: Dear Sir, I agree with Shilpi Jain Madam's point in Sl. No. 5. about the reversal of ITC. Where a sample is supplied as part of a business promotion, no tax invoice is required to be issued. But ITC utilised on such products has to be restricted under Rule 42. Reply By JOHN SHANNEL: The Reply: ....
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....Dear Experts, Please clarify what is the type of document have to be used in case of inter statement movement of samples? Reply By Sadanand Bulbule: The Reply: Dear Sir In the case of transportation of free sample garments,, being free from tax, delivery challan and E--way bill are the suggested documents to be carried. Reply By JOHN SHANNEL: The Reply: Dear Sir, can i use delivery challan i....
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....n case of inter state movement of goods too? Does rule 55 also applies to inter state movement of samples? Reply By Sadanand Bulbule: The Reply: Dear Sir Refer Rule 55(1)(c).<br> Discussion Forum - Knowledge Sharing ....