TaxTMI 
TaxTMI 
2025 (9) TMI 1053
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.... maternity pad, Topgrip - Compression Bandage, Easyfix - Clear ECI Cannula Fixator etc. M/s Dynamic Techno Medicals Private Limited is registered under GST Act 2017 bearing GSTIN 32AAACD8262E1Z0. 2. In this ruling, a reference to the provisions of the CGST Act, Rules and Notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the Notifications issued thereunder. 3. The issues on which advance ruling sought are stated above. 4. Contentions of the Applicant 4.1 The applicant is engaged in the manufacture and marketing of various health aid products, including, inter alia, Comprezon (Varicose Vein Stockings), Elnova (Surgical Lumbo Sacral Corset), New Mom (Maternity Pad....
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....ck register once they are no longer usable. Such scrap is cleared on payment of applicable GST on its value. Accordingly, the applicant is of the view that the dispatch of demo samples for demonstration purposes does not require reversal of Input Tax Credit (ITC), a's tax is eventually paid when the scrap is cleared. 4.4 Based on the above, the applicant contends that the demo products issued to Product Specialists for marketing and educational purposes should not be equated with "Physicians' Samples - Not for Sale" and thus must be treated differently for the purposes of GST compliance. 5. Comments of the Jurisdictional Officer The application was forwarded to the jurisdictional officer as per provisions of Section 98 (1) ....
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....onsideration are issued to Product Specialists, who use them for demonstration purposes to prospective customers. These demo units, once worn out through repeated use, are neither sold nor distributed but are disposed of as scrap, on payment of applicable GST. The core issue for determination is whether such demo items are to be treated on par with "Physicians' Samples - Not for Sale" and whether Input Tax Credit (ITC) reversal is required in respect of such demo items. 7.3 The first question pertains to whether the issuance of demo items qualifies as disposal akin to "Physicians' Samples - Not for Sale". A fundamental distinction between demonstration goods and physicians' samples lies in the transfer of title. In the case o....
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....y for demonstration and educational purposes, and are not distributed to customers or any third party. The Product Specialists merely use these goods as representatives of the applicant, and the goods continue to remain the property of the applicant throughout their lifecycle. Once worn out through repeated use, such items are recorded as scrap in the stock register and cleared on payment of applicable GST. Therefore, since there is no transfer of ownership or disposal at the stage of issuance, the act of issuing demo items cannot be equated with the distribution of physicians' samples. Legally, the first and only point of "supply" in terms of GST occurs when the goods are finally scrapped and cleared with tax payment. As such, the issu....