Free samples in pharmaceutical company

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73 Points Posted on 23 December 2022
What is the treatment of free sapmples given by supplier to a party , how to account for it in GST?
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On 23 December 2022 at 13:28 Report
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Quick Summary
This discussion clarifies the Goods and Services Tax (GST) treatment for free samples provided by pharmaceutical suppliers. It highlights that GST is payable on distributed free samples, and the recipient cannot claim input tax credit. To improve tracking and accounting, a common practice suggested is to bill these samples at a nominal rate, such as £1, plus GST.

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17 Points Posted on 23 December 2022
Full amount gst payable,
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On 23 December 2022 at 18:33
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Employee
87 Points Posted on 23 December 2022
Supplier has to reverse ITC availed on free samples
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On 23 December 2022 at 22:32
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Profession
28261 Points Posted on 24 December 2022
No input tax credit on free samples.
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On 24 December 2022 at 08:09
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Executive
74 Points Posted on 25 December 2022
In case of receipt no GST credit and in case of distribution as free Sample GST is payable
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On 25 December 2022 at 12:44
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Finance/Compliance Consultant
69428 Points Posted on 26 December 2022

Ideally, I can see billing these @ Rs. 1/- + GST as a practise to keep a track and better manage in terms of accounting.   

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On 26 December 2022 at 14:58

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