Can we issue a Zero value invoice in case of free sample sales to Customer. Customer will not pay anything, directly or indirectly, to us for such free samples sold. We mention the value of such goods as Zero (transaction value paid or payable by buyer) and subsequently the GST on such invoice is zero and total value is also zero. and mention the same under GSTR-1.
is this a correct practice.
Yes we reverse the ITC of the same. My concern was that we issue Zero value invoice so if there is anything incorrect in that.
Section 15 says value for unrelated parties would be amount paid or payable by buyer so since nothing is paid by the buyer, he value will be zero for such invoice. This is my understanding.
Thanks for the clarification. This really helped.
Arvindkumar Maniar & Co.
Rajkot
CA
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CAclubindia
