Sample sale

Gst is not imposed on free samples

Then we need to reverse itc

Samples which are supplied free of cost , without any consideration, do not qualify as „supply‟ under GST except where the activity falls within the ambit of Schedule I of the said Act.

And clause (h) of sub-section (5) of section 17 of the said Act provides that ITC
shall not be available in respect of goods
disposed of by way of gift or free samples.

So ITC not available.

In our case, we sale goods to a distributor then the distributor use good as a sample for tasting

distributor cannot claim itc on sample