GST On Free Samples And Gifts and other sales promotional schemes

Know How GST Apply on Free Samples

In this era of cut-throat competition, businesses are trying all possible techniques to attract customers. One of the most common approaches here is to distribute free samples and gifts. However, the question that arises is, how are these samples and gifts taxed? GST is levied when there is supply. But when there is no direct revenue inflow, how can such goods be taxed? In this article, we will briefly discuss the aspects of taxability, valuation and availability of ITC on such supplies from the supplier’s point of view. In this article, we’ll discuss GST on free samples, the free samples under GST, GST invoice for free samples, discounts under GST.

Source Mastersindia