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Export Sales-samples, Goods and Services Tax - GST

Issue Id: - 118137
Dated: 1-9-2022
By:- vignesh VSACCOUNTOPRIVATELIMITED
Export Sales-samples

  • Contents

Sir, export of goods as samples. we will not receive funds for this sample sent! how to show the same in GSTR-1 and for Income tax?

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Posts / Replies

Showing Replies 1 to 6 of 6 Records

1 Dated: 3-9-2022
By:- vijay kumar

You will be required to pay GST and clear such samples, in the wake of Rule 96B of the CGST Rules, 2017. In the GSTR-1, you can show such clearance under Zero rated supply of goods with payment of tax, but don't claim any refund of the tax paid since proceeds will not be received


2 Dated: 5-9-2022
By:- Amit Agrawal

Barring activities specified in Schedule I, for any activity to fall under 'supply' u/s 7, such activity needs to be made or agreed to be made for a consideration by a person in the course or furtherance of business.

Exporting goods as free samples will not fall as 'supply' u/s 7 (presuming exceptions not applying) as there is no consideration to be received there-against. Hence, question of issuance of tax-invoice u/r 46 or disclosures in Form GSTR-1 or liability to pay outward supply does not arise.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.


3 Dated: 5-9-2022
By:- Amit Agrawal

Rule 55 will come into play for 'transportation of goods without issue of invoice' and E-way bill where applicable.

And, u/s 17 (5) (h), input tax credit is not be available in respect of 'goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples'.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.


4 Dated: 5-9-2022
By:- Amit Agrawal

Please read Para 2 of my post at serial number 2 above, as follows:

Exporting goods as free samples will not fall as 'supply' u/s 7 (presuming exceptions not applying) as there is no consideration to be received there-against. Hence, question/s of issuance of tax-invoice u/r 46 or disclosures in Form GSTR-1 or any liability to pay gst as outward supply (just because non-receipt of convertible foreign currency etc. does not arise.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.


5 Dated: 10-9-2022
By:- KASTURI SETHI

Is sample, de facto, free of charge ? That is worth penetration before 'jumping' at conclusion ?


6 Dated: 11-9-2022
By:- Shilpi Jain

Is this sample a pre-condition for any supply / sale contract? Or is it like a sale promotion tactic? Or is it for fulfilling some regulatory testing requirements?

Further facts required to confirm the tax treatment.


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