Question 26 - Goods were sent on approval not earlier than six months before the appointed day but are returned to the seller after 6 months from the appointed day, will tax be payable under GST?

Tax liability for goods sent on approval arises when returned after prescribed period, payable by the sender under GST.

Goods sent on approval before the appointed day but returned after the six month threshold are taxable under GST if the goods are liable to tax and the buyer returns them after the prescribed period; tax is payable by the person who sent the goods on approval basis.