Template Overview
This is a free invoice for free sample under GST in Excel. The file is a delivery challan, not a tax invoice. CBIC Circular No. 92/11/2019-GST says samples supplied free of cost, without consideration, are not a supply, except where Schedule I of the CGST Act applies. You do not charge GST, and the consignee does not pay you. Rule 55 of the CGST Rules is the document for moving those goods.
People also search the plural, invoice for free samples under GST. Same file. It is not the GST invoice template. That tax invoice is for a taxable sale, and it adds CGST and SGST to the total the buyer pays. It is also not an RCM invoice. Reverse charge is a different supply, where someone does pay GST to the government.
Worked sample: ₹5,790 of personal-care goods
The sheet is filled with three lines a manufacturer might send a shop before any order. Nothing is sold. HSN headings: 3305 shampoo, 3304 skin cream, 3401 soap.
| Goods | Qty | Value / unit | Value | |---|---|---|---| | Herbal shampoo, 50 ml | 30 | ₹85 | ₹2,550 | | Moisturising cream, 20 g | 40 | ₹60 | ₹2,400 | | Bathing bar, 75 g | 24 | ₹35 | ₹840 | | Value of goods | | | ₹5,790 |
Check the first line by hand: 30 × 85 = 2,550. The total is 2,550 + 2,400 + 840 = 5,790. There is no GST column. ₹5,790 is the value Rule 55 asks you to write on the challan. It is not a price. The consignee pays ₹0.
The e-way bill cell reads that total. ₹5,790 is under the general limit of ₹50,000, so the cell says Not required. Raise a quantity until the total crosses ₹50,000 and the cell changes to Required. Some states set a different limit for movement inside the state. The sheet only knows the general limit.
Set Movement (cell G6) to Inter when the consignee is in another state. The place-of-supply reminder then says to fill cell G7. Rule 55(1)(viii) asks for place of supply only on an inter-state movement. For Intra, that cell says place of supply is not required.
What you type
- Consigner legal name, address, GSTIN, and state. You are registered, and you sign the challan.
- Challan number, 16 characters or fewer, in its own series. DC-FS-001 is the sample. Do not reuse your tax-invoice series.
- Consignee name and address. GSTIN only if they have one. A shop or a doctor with no GSTIN is "Unregistered".
- Description, HSN, quantity, unit, and value per unit. Leave spare rows empty. The total ignores them.
- Vehicle number and transporter when the goods leave with a carrier.
Type the HSN length your turnover requires. The sample uses the four-digit heading. Rewrite the amount in words if you change the quantities. The sample words match ₹5,790.
Keep three copies: original for the consignee, duplicate for the transporter, triplicate for the consigner. Rule 55(2) spells out those three markings when the challan covers a supply of goods. Free samples are not a supply, and the same three copies are still what the driver and the consignee need.
What you do not do
Do not add GST "so the format looks complete". Rule 55 asks for tax rate and tax amount only where the transportation is for supply to the consignee. A free sample is not that.
Do not claim input tax credit on these goods. Section 17(5)(h) blocks credit on goods disposed of by way of gift or free samples. Reverse whatever you already claimed. Circular 92 says the opposite when Schedule I makes the distribution a supply: GST is payable, and credit is then allowed. Those cases do not belong on this challan.
Use a tax invoice, not this file, when:
- The recipient is a related person, or a distinct person (your own branch with a different GSTIN). Schedule I treats that as a supply even with no consideration.
- The goods are a gift to an employee and the gifts to that employee in the financial year go above ₹50,000. Gifts within ₹50,000 are not a supply. Gifts above that are.
- You charge any price, even a token price. Consideration makes it a supply. Use the GST invoice template.
Guide: How to create an invoice for free sample under GST in Excel.
Features
- Delivery challan under Rule 55, titled for the free-sample search
- No GST column — tax is not charged on a free sample
- Value = quantity × value per unit, totalled for the challan
- Movement switch: Intra or Inter, with a place-of-supply reminder
- E-way bill cell flips when the value crosses ₹50,000
- Worked lines: shampoo ₹2,550, cream ₹2,400, soap ₹840
Instructions
- Download the file and open it in Excel, Google Sheets, or LibreOffice.
- Fill in the consigner's legal name, address, GSTIN, and state. You sign this challan.
- Give the challan its own number, 16 characters or fewer, and enter the date.
- Set Movement to Intra if the consignee is in your state, or Inter if not. For Inter, type the place of supply in G7.
- Fill in the consignee. Write Unregistered if they have no GSTIN.
- Enter description, HSN, quantity, unit, and value per unit. The value column and the total fill in. Do not add GST.
- Read the e-way bill cell. Print three copies, mark which copy it is, and sign.
FAQ
Is an invoice for free samples under GST a tax invoice?
No. Samples sent free of cost, without consideration, are not a supply under section 7, except where Schedule I applies. CBIC Circular No. 92/11/2019-GST says so. The document for the movement is a delivery challan under Rule 55. This file is that challan. GST is not charged, and the consignee pays nothing.
Why does the challan still show a value if nobody pays it?
Rule 55 requires a taxable value on the challan. On a free sample that figure is the value of the goods (here ₹5,790), so the document and any e-way bill have a value. It is not a price. Do not collect it, and do not calculate GST on it.
Do I need an e-way bill for free samples?
Rule 138 applies when goods move on a delivery challan. The general limit is ₹50,000. The sample total of ₹5,790 is under that limit, so the sheet says Not required. If your total goes over ₹50,000, the cell says Required. Check the intra-state limit in the state the goods move through. It can differ.
Can I claim input tax credit on goods I give as free samples?
No. Section 17(5)(h) blocks input tax credit on goods disposed of by way of gift or free samples. Reverse credit you already claimed. If Schedule I makes the distribution a supply, the treatment flips: you pay GST on a tax invoice, and Circular 92 says credit is then available. Do not use this challan for that case.
What if the samples go to my own branch in another state?
A branch with a different GSTIN is a distinct person. Schedule I treats a supply between distinct persons as a supply even without consideration. Issue a tax invoice and pay GST. This free-sample challan is the wrong file. Movement between godowns under the same GSTIN is a different delivery challan, and it is not a free sample either.