Invoice for Free Sample of goods

By | May 16, 2018
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(Last Updated On: May 17, 2018)

Invoicing of Free Sample of Goods

How should free sample of goods be supplied? By raising performa invoice or delivery challan or Bill of Supply or Tax invoice under section 31 of CGST Act with Rs.0.01 value. Note: We receive free sample goods from our supplier and the same is supplied to customers as free sample.

Video Lecture on Invoicing of Free samples

My Comment :  Free samples of goods should be supplied based on delivery challan with normal value as per Rule 55 of CGST Rules 2017 .

When Tax Invoice is to be issued

As per section 31(1) of CGST Act 

A registered person supplying taxable goods shall issue Tax Invoice

When Bill of Supply is required to be issued

As per section 31(3)(c) of CGST Act 

a registered person supplying

  • exempted goods or services or both or
  • paying tax under the provisions of section 10 (Composition Scheme)

 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed:

When Delivery Challan is to be issues

As per Rule 55(1) of CGST Rules 2017 :- 

Transportation of goods without issue of invoice

55. (1) For the purposes of-

(a)supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,
(b)transportation of goods for job work,
(c)transportation of goods for reasons other than by way of supply, or
(d)such other supplies as may be notified by the Board, 

the consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, containing particulars mentioned in  Rule 55(1) of CGST Rules 2017 .

Refer GST Tax Invoice Free Study Material  

Topic wise Commentary on GST Act of India

 

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source

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