TMI Blogfree samplesX X X X Extracts X X X X X X X X Extracts X X X X ..... Where free samples are given ( could be customers or outsiders) GST treatment Is following treatment appropriate a) since free samples are of finished product and presumable of fresh product GST has to be discharged on market value of the FOC product by supplier and shown in B2C in GSTR-1 ( even if given to a regd person) and requires no ITC reversal. b) sec 17(5) (h) - reversal of IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C would apply only in case of disposal of samples, since word disposal has been used ie where the sample is of inferior quality then ITC to be reversed - Reply By Alkesh Jani - The Reply = Sir, Please read section 17(5)(h) by omitting the words lost, stolen, destroyed, written off or disposed of and gift. Hope this will clear ambiguity. Thanks, With regards, - Reply By KASTURI S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ETHI - The Reply = Dear Querist, Why you shutting your eyes on the word, 'Free' ? I support the the reply of Sh.Alkesh Jani Ji. - Reply By Mahadev R - The Reply = Option between identifying the ITC on inputs and reversing Vs. paying GST on OMV when it is known could be considered. - Reply By Madhavan iyengar - The Reply = There is no option, sec 17(5) needs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be strictly interpreted we need to first ascertain principally whether we are treating samples as FOC for discharge of gst or if not then reverse ITC. Once dept/ courts interpret there should not be any interest liability as all these will come after 2/3 years and interest will be sizeable. So we need to fix it now. as already advised by learned readers that ITC to be reversed ??? - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By Mahadev R - The Reply = GST is a law wherein still there are lot of issues for which there is no clarity in law straight forward. Till that time we could consider options. When GST is paid on finished goods, generally it would be more than ITC amount. Irrespective of options followed, it can be argued that ITC has been reversed. My personal view. Experts are free to agree / disagree - Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply By Madhavan iyengar - The Reply = yes i fully appreciate your views and agree and we all need to deliberate then only finer points would come out. both stand out on different footing Reversal of ITC is separate and utilising ITC to discharge the out put liability is separate Department would ask for a working as to how we have discharged the gst / reversed If we reverse then we need to fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low some methodology say on FIFO basis. and if discharging gst then it would paid out thru our acc ITC. - Reply By KASTURI SETHI - The Reply = I concur with the views of Sh.Madhavan Ji. - free samples - Query Started By: - Madhavan iyengar Dated:- 6-1-2019 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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