TaxTMI 
TaxTMI 
Goods are sent for display purpose from one state to another state on a returnable basis. Can it be sent under a delivery challan without payment of GST, or a Tax Invoice needs to be prepared by paying GST?
Applicability of GST
06 Apr 2023 
18 Replies 
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Transportation other than supply: use a delivery challan for returnable display consignments unless treated as supply between distinct persons.
Whether interstate movement of returnable goods for demonstration is a supply determines GST treatment: if the movement is transportation other than by way of supply, a delivery challan and e way bill suffice and no tax invoice is required; however, movements between distinct registrations or related persons may be treated as supply under Schedule I, in which case parties may issue tax invoices and reciprocal invoices when the goods are returned. (AI Summary)
Whether interstate movement of returnable goods for demonstration is a supply determines GST treatment: if the movement is transportation other than by way of supply, a delivery challan and e way bill suffice and no tax invoice is required; however, movements between distinct registrations or related persons may be treated as supply under Schedule I, in which case parties may issue tax invoices and reciprocal invoices when the goods are returned. (AI Summary)