composition schemes

GST not required to charge on transfer
but reverse the ITC availed in respect of these goods

on free samples as per section 17(5) there is no credit and it wont amount to supply

1) As per Schedule I it is treated as supply ( No consideration )
2) But 17(5) blocks the credit in respect of these goods
Hence ITC availed should be reversed & Pay GST ( Reversed ITC)

the 3 situations in schedule 1 are between related party except for permanent transfer of business assets on which ITC is available once
the credit is blocked because there is no consideration in free samples to qualify for supply consideration and course or furtherance of business are neccessary

1) If we know that at the time of Purchase it will be supplied as free samples, we will not take Input tax credit.
2) As no ITC availed It will not be supply as per schedule I
3) After availing ITC we may supply the goods as free samples, or such goods may be destroyed ( blocked credit ) or such goods used for personal ( blocked credit )
4) In such case availed ITC should be reversed