ITC on Goods distributed as free sample
This query is : Resolved
16 September 2021
Dear Sir / Madam,
Mr A started new venture of dealing in Tshirts. He purchased 150 t-shirts. The seller showed the entry in his GSTR1 against GSTN of Mr. A.
On the occasion of 15th August, Mr A printed his material on T-shirts. He distributed around 135 shirts as free samples as advertisement of his business. He was able to sell 5 T-shirts. 3 T-shirts got damaged and 7 remained in hand.
Now my queries are as follows:
1) Can Mr A claim ITC on the 135 T-shirts distributed as free samples? If No, how to show this ITC in GST return??
2) Can he claim ITC on 3 damaged T-shirts? If No, how to show this ITC in GST return??
Kindly guide me,
Regards,
Suraj
Dear Sir / Madam,
Mr A started new venture of dealing in Tshirts. He purchased 150 t-shirts. The seller showed the entry in his GSTR1 against GSTN of Mr. A.
On the occasion of 15th August, Mr A printed his material on T-shirts. He distributed around 135 shirts as free samples as advertisement of his business. He was able to sell 5 T-shirts. 3 T-shirts got damaged and 7 remained in hand.
Now my queries are as follows:
1) Can Mr A claim ITC on the 135 T-shirts distributed as free samples? If No, how to show this ITC in GST return??
2) Can he claim ITC on 3 damaged T-shirts? If No, how to show this ITC in GST return??
Kindly guide me,
Regards,
Suraj
16 September 2021
1 yes, ITC can be claimed treating it as advertisment expenses.
2 No, don't claim ITC in GSTR 3b.
2 No, don't claim ITC in GSTR 3b.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- TDS _Long term Capital Gain ref.sec 214 Table 2
- F&O reporting in ITR
- Residential status of non resident
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
