Gst Query Please Reply



Suppose I Purchased Samples and Distributed Freely to the Doctors, There is a Input tax Reversal,Since there is no Value addition to Transaction.

Suppose I purchased Solar bulb and Distributed as Sales promotion Expenses to Doctors.in This Case Input is Eligible.

What is the Distinguish Between this Two Transaction?Reason for this 1st Disallowance and 2nd Allowance
 
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"Do the Right Thing...!!!"

Both of the Condition "ITC NOT AVAILABLE".
 
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Section 16(1) of the CGST ACT Provides that every registered person entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used, in the course of furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.

Section 17(5)(h) of the IGST ACT Provides that No input tax credit is available if goods lost, stolen, destroyed , written off or disposed off by way of gift or free sample.

Hence on combined reading of the above, Input tax credit on inputs & services used in free sample should be reversed.
 
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As Per Second Para Act says for Distributing by way of Free samples and Gift,ITC Should Be Reversed
But as per Last para you mention only Free Samples,I don't Understand Please Clarify Me Sir..Tq for your previous Reply sir,Waiting for This...
 
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I specifically mentioned as per your query (free sample)
ITC should be reversed for all above said points.
 
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So as far as Sales Promotion Concerned ITC Can Be Availed?
 
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