Movement of Goods on Trail under GST

[Rupali Gole]

Company want to move of goods on trial from factory to client place in other state. And after trial move the goods to other client in the same state for trial. For example, company M Ltd. having factory at Gujrat sent goods to ABC Ltd. at Rajasthan under delivery challan for trial run. If M Ltd. wants to move the goods from ABC ltd. to XYZ Ltd. another client in Rajasthan for trial run & from XYZ Ltd. to PQR Ltd. in Rajasthan for trial run, then under which document they can move the goods.

Thanks in advance

[KASTURI SETHI]

I hope this Circular will be helpful to you.

Supply of goods on approval basis within the States or in another State - Guidelines

C.B.E. & C. Circular No. 10/10/2017-GST, dated 18-10-2017

[Ganeshan Kalyani]

You can move the goods on delivery challan from one party (likely to be customer) to another party and from that party to subsequent party. In this chain of movement of goods the customer who happens to purchase the goods will be issued tax invoice.

[KASTURI SETHI]

Well explained by Sh.Ganeshan Kalyani Ji.

[Ganeshan Kalyani]

Thanks Sir.

AI Summary

Movement of goods on trial permitted under delivery challan; chain transfers allowed and tax invoice issued to purchaser. Movement of goods sent for trial or approval may be effected using a delivery challan whether within a State or interstate; successive transfers between recipients for trial can be made under delivery challans. The taxable supply is recognised on final sale, and the ultimate purchaser must be issued the tax invoice for that supply.