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

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.