Free issue material...

Not all supplies without consideration is taxable under GST. However Input tax credit related to free supply is required to be reversed.

Reversal of input tax credit in case of free supply is the provision considering VAT i.e involving "sale" but under GST works contract is treated as service so reversal of credit doesnt fit. Also although model act considered free issue as supply but there is still confusion regarding it in the passed act as to wheteher or not to treat it as supply.Moreover flow of consideration cant be ingnored which majorly depend on the nature of contract drafted between contractor and contractee.But still,more clarification is required from government side.

Free issue on what?

If free issue is for jub work etc, there is no need to consider it. Simply a bill of service value can be raised. Supplier has already paid GST on goods supplied.