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Input tax credit

14 June 2018

In case of inward supply a registered person who received the goods as free samples on which he has paid only GST taxes and no value of goods, can he avail input tax credit on this. Please give suggestion . Thank you .

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3 Replies

R. B. Yadav (CMA, LLB) (Tax Consultant) (590 Points)
Replied 14 June 2018

Is supplier and recipient related party?.
if not, why the supplier of free sample are changing gst.

Supply between unrelated party without consideration is not considered as a supply and gst is not leviable.

As it is not a supply under gst, no input credit will be allowed.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 14 June 2018

If the "FREE SAMPLES" received with Tax then it's not as free as per GST...
If Free samples then GST not chargeable...

So,
As per Your query You can avail the ITC benefits
or
The supplier will be prepare without GST for the Samples...