Question 25 - Goods were sent on approval before the appointed day but are returned to the seller after 6 months from the appointed day, will tax be payable in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 24 Transitional Provisions
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Goods sent on approval: late returns trigger GST liability where taxable goods are returned after the prescribed period. Goods sent on approval before the appointed day are subject to GST if they are taxable and are returned to the seller after the prescribed return period ... Summary
Goods sent on approval: late returns trigger GST liability where taxable goods are returned after the prescribed period.
Goods sent on approval before the appointed day are subject to GST if they are taxable and are returned to the seller after the prescribed return period from the appointed day; the six-month period (with a possible two-month extension) triggers GST liability on such late returns, under the State GST transitional provision for late returns.
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