What is GST treatment of free samples and gifts?
Nexa Consultancy | Startup & Finance Glossary
Under GST, Input Tax Credit (ITC) is not available for goods lost, stolen, destroyed, written off, or disposed of by way of gift or free samples. If you have already claimed ITC on the purchase of such goods, you must reverse it.
Startup Example: A D2C brand uses products from its stock for a promotional giveaway. It must reverse the ITC it had claimed when it purchased those products.
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