Latest Query & Reply

Sir I have attached my gstr-3b for may month.

value (MRP) of free samples of medicines rs.84790

Total turnover (without free samples) of may month Rs. 262517

Total  ITC Rs. 29998

Kindly calculate and let me know the ITC to be reversed. I saw the formula but not able to calculate the amount. Kindly let me know the figure of ITC to be reversed.

Kindly reply the earliest sir.

Thank you in advance.


As per rule 37 of CGST rules, 2017, the amount of input tax credit shall be added to the output tax liability of the registered person where goods are supplied without consideration. The taxpayer has to simply reverse the ITC which was claimed earlier at the time of purchase of said goods. There is no formula as such.

For example— suppose a taxpayer purchase LED TV and Laptop from their distributor. The following are the details of inward supplies:

Product      QTY     Rate            Amount      GST

TV               10        50,000         5,00,000     90000

Laptop          10        25000          2,50,000     45000

An offer of buy one TV and get laptop free announced by the taxpayer. Now on making outward supply of a laptop as free, GST will not be charged but the taxpayer has to reverse the ITC claim of Rs 4,500 on the inward supply of laptop.