Deepshikha Sharma (Tax Manager) (137 Points)
02 November 2020Can we issue a Zero value invoice in case of free sample sales to Customer. Customer will not pay anything, directly or indirectly, to us for such free samples sold. We mention the value of such goods as Zero (transaction value paid or payable by buyer) and subsequently the GST on such invoice is zero and total value is also zero. and mention the same under GSTR-1.
is this a correct practice.
pankaj
(Chartered Accountant)
(106 Points)
Replied 02 November 2020
Deepshikha Sharma
(Tax Manager)
(137 Points)
Replied 03 November 2020
Yes we reverse the ITC of the same. My concern was that we issue Zero value invoice so if there is anything incorrect in that.
Section 15 says value for unrelated parties would be amount paid or payable by buyer so since nothing is paid by the buyer, he value will be zero for such invoice. This is my understanding.
ayusmita
(Tax consultant)
(5885 Points)
Replied 03 November 2020
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 04 November 2020
Deepshikha Sharma
(Tax Manager)
(137 Points)
Replied 04 November 2020
Thanks for the clarification. This really helped.
CAclubindia
