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.

[Ganeshan Kalyani]

Material can be sent on Delivery Challan. And whenever sale occurs then Tax invoice to be issued.

[SURYAKANT MITHBAVKAR]

Delivery challon to be prepared while sending material for retunable basis but while returning by customer which document to be taken from customer under GST Act.

[Ganeshan Kalyani]

He will also have to issue Delivery challan.

[YAGAY andSUN]

GST would be payable by you and would be charged by your customer, if there is any charges for conducting the trials.

AI Summary

Delivery challan required for sending returnable material; tax invoice on sale; GST may apply if trial charges exist. When goods are sent on a returnable basis for trial, a Delivery Challan should be issued at dispatch and a Tax Invoice only if the transaction converts into a sale. Upon return, the customer should issue a Delivery Challan documenting the return. If the supplier charges for conducting trials, GST consequences are noted: GST would be payable by the supplier and charged by the customer when trial charges are levied.