MATERIAL SENT TO CUSTOMER ON RETURNABLE BASIS

[SURYAKANT MITHBAVKAR]

In certain cases we have to sent some material to customer to take trial on their existing machine. After successful trial customer will give us order.

While sending the material to customer on returnable basis which challon to be followed under GST Act.

AI Summary

Guidance on Sending Returnable Materials: Use Delivery Challan First, Tax Invoice Upon Sale Under GST Act. A discussion on a forum addresses the process of sending materials to customers on a returnable basis under the GST Act. The initial query asks about the appropriate documentation required. It is advised that a Delivery Challan should be used when sending materials, and a Tax Invoice should be issued upon sale. When customers return the materials, they should also issue a Delivery Challan. Additionally, GST may be applicable if there are charges for conducting trials. The discussion involves multiple participants clarifying the documentation and tax implications.