Summary
- The 57th GST Council Meeting on October 8, 2026, proposed removing the restriction on input tax credit (ITC) for free samples under Section 17(5)(h) of the CGST Act, 2017.
- This change could significantly benefit industries like pharmaceuticals, FMCG, and cosmetics that distribute samples for promotion and testing.
- However, eligibility will depend on final statutory wording and compliance with Section 16 conditions.
- The amendment is not yet operative, leaving businesses uncertain about its implications for past blocked credits and GST liabilities.
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