Free of Cost Sample Goods Invoice Value

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.

Replies (7)
Quick Summary
This discussion clarifies the practice of issuing zero-value invoices for free sample goods. While you can issue such invoices, it's crucial to understand the GST implications. If you've availed Input Tax Credit (ITC) on these goods, you'll need to reverse it, especially if the goods are manufactured by you. The transaction value for unrelated parties is based on what's paid or payable, making it zero when no payment is involved.

No this is not correct
Yes, you can
Sec 17(5)
You need to reverse the ITC if you availed.

if goods is manufactured by you then reverse the proportionate ITC for that month.

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.

You can issue invoice for free sample
but you should maintain the serial number
Yes when the Recepeint is not related or distinct person & there is no consideration is involved , so it' cannot be cover under supply in term of Section 7 of CGST Act.

Can issue nil amount bill.

Note : Make sure if any ITC availed need to be reversed in term Section 17(5).

Thanks for the clarification. This really helped.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details