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Gst on samples drawn for testing

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18 March 2019 XYZ(Manufacturer) withdrawing samples of raw material, semi – finished goods and finished goods for Q.C. testing within factory. The samples get consumed / destroyed during testing. Is XYZ required to reverse proportionate input tax credit / pay GST on such samples?

18 March 2019 QC testing is a part of manufacturing process ITC reversal not required.
Reversal required only when damaged in transit or through fire or natural calamities.

18 March 2019 Hi sir,
In my view , you need to reverse those sample draw-which is consumed on site. because as per Sec. 17(5) (b)(iii)(h) of CGST Act 2017
goods lost, stolen destroyed , written off or disposed by way of gift or free samples
because after testing you are destroying those samples.




18 March 2019 Testing will not fall under goods lost, stolen destroyed , written off or disposed by way of gift or free samples. Reverse not required.


18 March 2019 Dear seetharaman Sir, Thank you for correction.

22 March 2019 In my humble opinion also goods have been consumed not lost.



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