14 June 2018
In case where the sample goods are given free of cost to the unrelated persons, there is no consideration. Hence, does not qualify as supply. As per Section 17(5)(h) of CGST Act, input tax credit is not allowed on free samples. In case where the free samples are given to the related persons or distinct persons, it will be considered as supply even without consideration. Applicable GST has to be paid on the same. Such case, input tax credit can be claimed.
CAclubindia
