applicability of gst on testing of finished goods

[RAVISHANKER GARG]

We require to send our Finished product for testing out of factory, request to confirm whether GST is required to pay and get credit after receipt of goods.

[Shilpi Jain]

Not required. Send the goods on delivery challan.

[Shilpi Jain]

This can also be regarded as job work and requires disclosure in ITC 04

[Ganeshan Kalyani]

Yes, the goods can be sent for testing under the cover of Delivery Challan. Show the GST amount on delivery challan as a disclosure requirement but no need to make GST payment.

AI Summary

Delivery challan for testing goods: disclose GST amount on challan, no GST payment required, and report in ITC form. Movement of finished goods for testing can be made under a delivery challan without immediate GST payment; the challan may show GST as a disclosure. If treated as job work, the movement must be disclosed in the ITC return, and recipients should comply with reporting requirements on receipt to claim input tax credit.