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Sample received and further sale without charge

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SUMIT KARESIA

155 Points Posted on 23 January 2020

If 'A' received goods as free sample without charge and further transfer the sample without charge,then what would be treatment in books during receiving and transferring such sample under GST?

Replies (3)

Quick Summary

This discussion clarifies the GST treatment for free samples. If goods are received as a free sample and then transferred without charge, no GST is applicable. While no GST is levied as samples have no intrinsic value for tax purposes, it's important to maintain inventory records. This is similar to promotional offers like '3+1' where GST is charged on the value of goods supplied, not the free items.

Anup Agarwal

1184 Points Posted on 23 January 2020

If a product is purchased as for example (3+1) and sold same as (3+1) then no GST is need to be charged. the value as supplier mentioned in invoice shall be charged by the seller.

hence value should be taken zero.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 23 January 2020

As sample poses no value , neither on purchase nor on sale , there will be no treatment in GST.

Yes as per Inventory maintenance need to be recorded in stock ledger