if goods transfer as free sample
and also ITC availed then GST
Applicable on such transfer or not
GST not required to charge on transfer
but reverse the ITC availed in respect of these goods
5 Replies
achuth menon
(274 Points)
Replied 22 March 2018
on free samples as per section 17(5) there is no credit and it wont amount to supply
Uday
(Article Assistant)
(411 Points)
Replied 22 March 2018
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)
2) But 17(5) blocks the credit in respect of these goods
Hence ITC availed should be reversed & Pay GST ( Reversed ITC)
achuth menon
(274 Points)
Replied 22 March 2018
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
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
Uday
(Article Assistant)
(411 Points)
Replied 23 March 2018
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
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
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