Free samples, gifts and promotional items under GST

Free samples and gifts are common in retail, pharma, beauty and consumer brands. The tax question is not just whether you charged the customer; it is also whether input credit remains available on what you gave away.

Why businesses get surprised

A free item can still have GST consequences because the law has specific rules on supplies without consideration and on blocked credits in some cases.

Promotion design matters

A true free gift, a buy-one-get-one promotion, and a bundled commercial offer may be treated differently. Structure the offer before you print the campaign, not after.