Question ID :
44847
082701
We are sending free samples abroad Indian Rs Value around 24000- through Proforma Invoice. Whether IGST has to be paid
If yes How this is to be mentioned in proforma invoice and reported In GSTR 1 and GSTR 3B
Posted by
Mahesh Kumar
on
May 05, 2025
Filed Under
GST
Hope the person located abroad is not a related person to the Indian person who is sending the free samples abroad. Then the following would be relevant;
As per subclause (a) of sub-section (1) of section 7 of the said Act, the expression “supply” includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Therefore, the goods or services or both which are supplied free of cost (without any consideration) shall not be treated as "supply? under GST( except in case of activities mentioned in Schedule I of the said Act). The same is also clarified in Circular 92/11/2019-GST dated 7th March 2019. Further, the said transaction do not amount to Zero-rated supplies. ITC may be required to be reversed under Section 17)(5)(h) of the CGST Act 2017. Hope this clarifies, feel free to reach out on thulasiram@hnaindia.com
Posted by
SREENIVASULU THULASIRAM on
May 06, 2025
Answer ID :
85848
No IGST is payable on export of free samples sent without consideration. Use a delivery challan (not a tax invoice), mention "free sample" and "no GST" on the proforma invoice, do not report as taxable supply in GSTR-1/3B, and reverse any related ITC.
Posted by
CA NIKHIL JAIN on
May 06, 2025