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GST on free samples

Gayathri Maruwada (52 Points)

04 March 2019

How should the invoice format be for Free samples under GST

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2 Replies

CA CS Chirag (Practicing CA) (834 Points)
Replied 04 March 2019

Case 1 As the Free Samples are not supplies and hence not required to disclosed as outward supplies in the returns. Reversal of Credit : - The credit relating to the same can be disclosed in Table 4 of the Form GSTR 3B as Ineligible ITC under Section 17(5) or Credit Reversal under “Others” if credit was already availed. Type 2 – Free Samples will be treated as outward supplies and hence it hast to disclosed as taxable outward supply in GSTR 3B as B2C sale. Free Supplies do not attract credit reversal nor are they additional supplies and hence do not require any specific disclosure in the returns. In case you decide to pay output tax on the same then raise a B2C invoice and accordingly disclose the same in Form GSTR 3B and Form GSTR 1.