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    Question

    In case goods disposed off by way of free

    sample:
    A recipient can claim ITC. Correct Answer Incorrect Answer
    B supplier can claim ITC. Correct Answer Incorrect Answer
    C supplier cannot claim ITC. Correct Answer Incorrect Answer
    D ITC can be claimed if value is more than 1,000/- Correct Answer Incorrect Answer

    Solution

    In the case of goods disposed of by way of free samples, the supplier cannot claim Input Tax Credit (ITC) because no consideration is received for these goods. ITC is generally available when there is a taxable supply for consideration. Since no consideration is involved in giving away free samples, the supplier is not eligible to claim ITC on the tax paid for those samples.

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