Input eligibilty on supply of free sample with 1 product

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2018 Dear Expert

We are selling One product with Free sample as business promotion in normal course of business

my Query 1) Can we take input credite for purchase of this product(writch watch)

Query(2) Whether we have to pay Gst on Supply of Free sample product

Thanking you

Renu Goyal

Renu Goyal (Expert)
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22 January 2018 For wrist watch you can take ITC but for the free samples ITC needs to be reversed.And on sale of free sample to unrelated party GST not applicable.

Gokul Sharma

Gokul Sharma (Expert)
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22 January 2018 you can claim full ITC but you have to Calculate Outward GST Liability on the Basis of Market Value of Free sample and pay GST Liability adjusting ITC on Purchase.