Movement of goods (such as jewellery) for supply on approval basis

Raju Choudhary

Administrator
Staff member
#1
Movement of goods (such as jewellery) for supply on approval basis (intra or inter-State)

At times, suppliers have to visit other places and carry their goods along for approval. They can only issue the invoice at the time of supply and while carrying the goods they are not aware if the goods will be sold. While carrying goods to other goods, the supplier cannot even register as a casual taxable person as it is impossible for him to ascertain the supplies beforehand.

For carrying out this supply, it has been provided that the supplier should issue a delivery challan for initial transportation of goods. Only when the supply gets confirmed, the invoice can be issued. Further, such supplies where the supplier carries the goods from one State to another and supplies them in a different State, will be treated as inter-State supplies. Therefore, they will attract integrated tax.

The above has been clarified vide Circular no. 10/10/2017-GST dated 18th October 2017
 
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