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GST consequences & Invoice for sample

Sagnik Majumder (Accounts Executive) (51 Points)

09 April 2019

Hello, I want to display one of my product in other different stores in different location. It will not be as free sample. This will be displayed by other stores on behalf of me and can be sold by them. If it will be sold after that I can make a tax invoice to my representative stores till that I can not make any tax invoice. please help me of GST consequences & how the Invoice will create for display but before sell by them pan Indiawise.

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3 Replies

CA Ankit Garg (MD | Genuine Filings) (781 Points)
Replied 09 April 2019

Generally, you need to pay GST if it's Interstate supply otherwise within state you can add other location as Additional Place and transfer goods on delivery Challan but the exact consequence will depend upon others factors/facts also like Terms of Contract, Valuation Provisions etc so I recommend you to consult any professional near you

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Sagnik Majumder (Accounts Executive) (51 Points)
Replied 09 April 2019

thank you Ankit Garg ji. But one of gst Consultant told that until other stores will sell this products i have to reverse the input tax credit for the particular products. Here other stores i wants to mean other companies stores where i wants to display sample as well as for sell. please suggest.

CA Ankit Garg (MD | Genuine Filings) (781 Points)
Replied 09 April 2019

Sir, I think you misunderstood such consultant, as this is your Outward supply therefore there is no question of Reversal of ITC for you, it's receipent who'll get the ITC & he need to reverse the same if he didn't make full payment of his purchase invoice within 180days of purchase, however if he make payment after 180days then he can claim such ITC reversed.