Related persons and distinct persons as per section 25 :
The term ‘Related Person’ has been defined in section 15(9) of CGST Act. This definition is for all purposes of CGST Act and hence will apply to Schedule I also,
The definition is discussed in chapter on GST Valuation.
As per section 25 of CGST Act, person who has obtained different registrations under GST will be treated as different persons. Establishment of a person in another State or Union Territory will also be different person, even if that establishment in another State or Union Territory is not registered under GST.
This will cover inter-state stock transfers and branch transfer of goods. It will also cover services provided by Head Office/Branch in one State or Union territory to branch/Head Office in another State or Union territory.
Free samples will not be subj ect to GST but input tax credit will have to be reversed.