A sample removal needs its own evidence trail
Section 154 of the CGST Act authorises the Commissioner, or an officer authorised by the Commissioner, to take necessary samples of goods from the possession of a taxable person and provide a receipt. The immediate accounting task is to identify exactly what left the premises and why. This article addresses departmental sampling, checked on 27 October 2026, rather than promotional samples supplied by a business. CBIC: CGST Act, section 154.
Verify the authority without substituting an internal checklist for the law
Record the officer identity, proceeding reference and the authority under which samples are taken. Section 154 identifies who can exercise this power; it does not prescribe in its text a universal sample weight, number of containers, laboratory fee or deadline for a laboratory report. Obtain the actual instructions relevant to the proceeding rather than asserting a standard quantity or automatic return entitlement. CGST Act section 154.
Make the receipt usable for the particular goods
The statute requires a receipt. As an operational control, seek identification of date, goods, batch or lot, quantity and unit, recipient officer and proceeding reference, together with seal or package identifiers where used. These suggested particulars help link the receipt to physical stock; they are not presented as a newly prescribed statutory form. Note factual discrepancies promptly in writing and retain acknowledgements without altering an issued receipt.
Reconcile custody and quantity before deciding accounting treatment
A physical removal does not by itself establish that ownership transferred, a sale occurred, goods were destroyed, or an input-tax-credit adjustment is due. Record the quantity removed and its custody status separately from commercial sales and free samples. For a registered person to whom Rule 56(2) applies, connect this record with the stock account. Any final tax or accounting classification requires the actual facts and applicable provisions; section 154 alone supplies no blanket answer. Current bare-law text: section 154 and Rule 56(2).
Keep the tested lot separate from the entire product population
Use the sample reference, product specification, lot and relevant dates to locate laboratory correspondence and any test results. Do not describe a result for one identified lot as a quantified result for every lot without supporting evidence. Where a departmental computation relies on a report, reconcile the report’s item and quantities to the removal record and assess the proposed inference on its actual terms.
Close returns, destruction and differences using actual documents
If goods are returned, record the actual quantity, date and condition and refer to the original removal. If testing consumes goods, retain the available confirmation rather than inventing a return or destruction certificate. Investigate differences between the receipt, stock entry and laboratory record. A disputed test result, demand or credit issue needs its own procedural response; correcting the stock spreadsheet does not resolve it. CGST Act section 154 in the April 2026 compilation.
Applicable primary references
CBIC: CGST Act, section 154 ICAI April 2026 GST bare law: section 154 and Rule 56
Six worked illustrations
All facts and amounts below are fictional. Assumptions describe the model, not additional statutory rules.
Illustrative example 1: Simple unit removal
A lot contains 1,000 units and the departmental receipt records 6 taken. The physically available remainder is 994 units. Retain the 6-unit sampling reference separately; do not post six sales merely to force stock agreement.
Illustrative example 2: Cartons and individual units
Twenty cartons contain 12 units each, giving 240 units. Three individual units are taken, leaving 237. A receipt for three units must not be booked as three cartons, which would incorrectly remove 36 units.
Illustrative example 3: Liquid measurements
A tank contains 500 litres. Three sealed containers each hold 0.5 litre, so 1.5 litres leave and 498.5 litres remain. The control is the same unit and measurement basis, not an assumed statutory sampling quantity.
Illustrative example 4: Partial return
From 200 units, 8 were taken and 3 are later returned with matching evidence. The physical balance becomes 195 and net units still outside the premises are 5. Record the return against the original sample reference rather than as a supplier purchase.
Illustrative example 5: Two separate receipts
A batch of 100 units has removals of 4 and 2 under different receipts. The remainder is 94, not 96. Verify that the second receipt is a separate removal before posting it; a photocopy of the first receipt must not create a second movement.
Illustrative example 6: Limit the inference to supported facts
Four lots contain 250 units each, totalling 1,000. Five samples are removed from lot A, leaving 245 in A and 995 physically overall. A test tied only to lot A does not itself quantify the characteristics of the other 750 units; any broader inference requires its own support.
Ten-step verification table
| Step | Action | Evidence |
|---|---|---|
| 1 | Identify the sampling power | Section and actual proceeding reference |
| 2 | Record officer authority | Identity and relevant authorisation evidence |
| 3 | Identify the stock population | Product, owner, premises and batch |
| 4 | Confirm units and quantities | Count, weight or volume basis |
| 5 | Obtain and preserve the receipt | Original and secure working copy |
| 6 | Post a separate custody movement | Linked stock-reference entry |
| 7 | Track test correspondence | Seal, laboratory and report references |
| 8 | Reconcile any return or consumption | Actual documents and quantity bridge |
| 9 | Review tax treatment independently | Applicable facts and provisions |
| 10 | Close discrepancies and responses | Written explanations and final reconciliation |
Sixteen practitioner FAQs
1. Who can take samples under section 154?
The Commissioner or an officer authorised by the Commissioner, where considered necessary under the provision.
2. Must a receipt be given?
Yes. Section 154 expressly requires a receipt for samples taken.
3. Is a sample taken by the department the same as a marketing sample?
No. Their purposes and evidence differ; do not use one label to predetermine the other’s tax treatment.
4. Does section 154 specify a fixed sample quantity?
Its text does not prescribe a universal quantity. Refer to actual applicable instructions and the goods involved.
5. Does the section itself name a standard receipt form?
It requires a receipt, but the text reviewed does not name a universal numbered form.
6. Why keep the batch number?
It links the removal to stock, specifications, the tested population and later correspondence.
7. Should carton and unit quantities be combined directly?
No. Convert them using the documented packing ratio before reconciliation.
8. Does physical removal prove a sale?
No. Record custody and determine any supply treatment separately from the mere sampling event.
9. Is ITC automatically reversed when samples leave?
This guide makes no automatic conclusion. Section 154 alone does not determine the applicable ITC result.
10. Does a laboratory report apply to all inventory?
Only draw conclusions justified by its scope and the surrounding evidence; do not mechanically extrapolate to unrelated lots.
11. What if the receipt and count differ?
Preserve both records, seek factual clarification promptly and retain the written discrepancy trail.
12. Can I amend the officer’s receipt myself?
Keep it intact. Record corrections through appropriate clarification or supporting correspondence.
13. What is the stock entry when samples return?
Link the actual returned quantity to the original sample reference, with date and condition evidence.
14. Is every sample guaranteed to be returned?
No automatic return right or deadline is asserted here. Testing and actual instructions may affect what remains.
15. How should consumed samples be supported?
Retain available test or consumption confirmation and assess the resulting accounting and tax treatment on its own facts.
16. What if a test later supports a proposed demand?
Review the actual report, inference and notice through the applicable response process; a quantity reconciliation alone does not settle the dispute.
Conclusion
Handle GST departmental sampling under section 154 with officer-authority evidence, receipts, batch quantities and a stock trail without inventing tax consequences.