{"id":6738,"date":"2025-11-11T17:55:16","date_gmt":"2025-11-11T12:25:16","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=6738"},"modified":"2025-11-11T18:30:11","modified_gmt":"2025-11-11T13:00:11","slug":"demo-goods-for-product-specialists-not-treated-as-physicians-samples-aar","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/demo-goods-for-product-specialists-not-treated-as-physicians-samples-aar","title":{"rendered":"Demo Goods for Product Specialists Not Treated as Physician\u2019s Samples | AAR"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000409965\/goods-issued-for-demonstration-by-product-specialist-not-to-be-treated-as-physicians-sample-aar\">In re: Dynamic Techno Medicals Pvt. Ltd. (2025) 35 Centax 296 (A.A.R. - GST - Ker.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>S\/Shri Jomy Jacob<\/strong> &amp; <strong>Mansur M.I.<\/strong>, Members<\/li>\n<li><strong>Shri Stanly James<\/strong>, CA, for the Appellant.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p class=\"Body-AllDocuments\">The applicant, engaged in the manufacture and marketing of various health aid products, appointed Product Specialists and provided them with fixed demo sets of its products for field demonstrations and marketing display. These demo sets, specific to each sales division, were used to showcase the functional efficacy and features of the products to prospective customers. The applicant submitted that such demo goods were never sold or distributed to third parties and remained the property of the company. After extensive use, these goods became worn out and were returned to the factory for scrapping on payment of applicable GST. The applicant sought an advance ruling on whether the issuance of such demo goods constituted a disposal of goods akin to \u2018Physicians\u2019 Samples &#8211; Not for Sale\u2019. The matter was accordingly placed before the Authority for Advance Ruling (AAR).<\/p>\n<h2><em>AAR Held<\/em><\/h2>\n<p class=\"Body-AllDocuments\">The AAR held that demo products issued to Product Specialists were not permanently transferred or gifted but were provided solely for demonstration purposes, with ownership retained by the applicant. The Product Specialists merely acted as custodians or agents of the company. Consequently, there was no disposal or transfer of title at the time of issuance, and such demo goods could not be equated with physicians\u2019 samples either factually or legally. The AAR observed that a \u2018supply\u2019 under Section 7 of the CGST Act and the Kerala GST Act would occur only when the goods were ultimately scrapped and cleared on payment of tax. Therefore, issuance of demo units did not amount to a disposal of goods and could not be treated on par with the distribution of \u2018Physicians\u2019 Samples- Not for Sale\u2019.<\/p>\n<h2><em>List of Circulars Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Circular%20No.%2092%2F11%2F2019-GST%20%5BF.NO.%2020%2F16%2F04%2F2018-GST%5D&amp;itemType=AP\">Circular No. 92\/11\/2019-GST [F.NO. 20\/16\/04\/2018-GST]<\/a>, Dated 07-03-2019<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: In re: Dynamic Techno Medicals Pvt. Ltd. (2025) 35 Centax&hellip;<\/p>\n","protected":false},"author":8,"featured_media":6747,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-6738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Demo Goods for Product Specialists Not Treated as Physician\u2019s Samples | AAR<\/title>\n<meta name=\"description\" content=\"AAR rules that demo goods issued to product specialists are not disposal or transfer, unlike physician\u2019s samples; supply arises only when scrapped and cleared on GST payment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/demo-goods-for-product-specialists-not-treated-as-physicians-samples-aar\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Demo Goods for Product Specialists Not Treated as Physician\u2019s Samples | AAR\" \/>\n<meta property=\"og:description\" content=\"AAR rules that demo goods issued to product specialists are not disposal or transfer, unlike physician\u2019s samples; 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