Free samples in pharmaceutical company

23 December 2022

What is the treatment of free sapmples given by supplier to a party , how to account for it in GST?

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5 Replies

Siva kumar (17 Points)
Replied 23 December 2022

Full amount gst payable,

Sravan Yelagandula (Employee) (87 Points)
Replied 23 December 2022

Supplier has to reverse ITC availed on free samples

sabyasachi mukherjee (27579 Points)
Replied 24 December 2022

No input tax credit on free samples.

shyam (Executive) (74 Points)
Replied 25 December 2022

In case of receipt no GST credit and in case of distribution as free Sample GST is payable

Asha Kanta Sharma (Manager - Finance & Accounts) (36365 Points)
Replied 26 December 2022

Ideally, I can see billing these @ Rs. 1/- + GST as a practise to keep a track and better manage in terms of accounting.

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