Pass purchase entry of Sanitizer with GST as follows
1) Purchase A/c Dr
CGST A/c Dr
SGST A/c Dr
To Sundry Creditors A/c Cr
( Purchase of Sanitizer , Invoice No ---- Dated ----)
2) When pay for above purchase
Sundry Creditors A/c Dr
To Bank A/c Cr
( payment made with Gst to supplier )
3) when you distribute Same Sanitizer as a Free Sample entry will be
Free Sample ( Sanitizer ) A/c Dr
To Purchase A/c Cr
( Being Sanitizer Distributed as free sample )
Note - No Input Tax credit For Free Sample as per section 17(5) (h) of CGST act 2017 , if you have taken credit please reverse . Also refer circular no 92/11/2019 dated 7/3/2019 Gst on free Sample
No need to pass separate entry for selling free samples. Pass entry in Stock Journal directly for reducing the stock.
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