Vinod Babu
(24191 Points)
Replied 14 September 2018
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.