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It is a general practice in many industries to distribute carry bag, table calendar, wall calendar, dairy, leather bags, book labels, shirts, pants, sweaters, bags, etc. to its customers, distributors, retailers, employees, etc.
The Kerala AAR in the matter of Dynamic Techno Medicals Private Limited held that products issued for demonstration by Product Specialists for marketing purposes cannot be treated at par with “Physicians Samples – Not for Sale” under GST, and no reversal of Input Tax Credit (ITC) is warranted on such demo goods.
In a move that could bring significant relief to India’s pharmaceutical sector, the Goods and Services Tax (GST) Council is likely to consider a clarificatory relief on the availability of Input Tax Credit (ITC) on free drug samples provided by pharma companies to doctors and hospitals.
At a time when marketing practices of pharma companies are already under question and government scanner, pharma majors have raised yet another concern with the government. Drugmakers have approached Bombay High Court seeking legal clarity as to whether the free…