TREATMENT OF GOODS SENT FOR TRIALS

[ANITA BHADRA]

Dear Sir/ Madam

Public Sector Undertaking of Gaziabad ( Under Ministry of Defence) send Radar to other state for trials on returnable gate pass .

This Radar is developed by PSU and will remain property of PSU only .

My query is- under GST Act , how long this property can be with other state and what is the GST implication on it .

Regards & Thanks in Advance

CA Anita Bhadra

AI Summary

Supply classification for trial consignments may be service or out of scope; e way bill and delivery challan obligations follow.
Where capital goods are sent interstate for trials without transfer of title, the shipment may constitute a supply of service if consideration is payable, or be out of GST scope if no consideration and no business use by the recipient. Compliance duties remain: an e way bill is required for movement, a delivery challan should be used (returnable gate pass is not a GST document), and the sender may need to record the trial site as an additional place of business; classification and reverse charge exposure depend on full contractual facts.