Goods are sent outside India for demonstration / Display on returnable basis. Can it be sent under a Delivery Challan without payment of GST and without following LUT procedure?
Goods sent outside India on returnable basis
Kaustubh Karandikar
Debate on sending goods abroad for demo without GST or LUT; Delivery Challan suggested based on IGST Act insights. A discussion on a forum addressed the query about sending goods outside India for demonstration or display on a returnable basis without paying GST or following the Letter of Undertaking (LUT) procedure. One participant referenced the IGST Act, suggesting that taking goods out of India constitutes an export, thus requiring an LUT and invoice. Another participant highlighted that since there is no supply, it cannot be considered a zero-rated supply under GST, but goods can be transported using a Delivery Challan (DC), citing a relevant circular for guidance. Participants expressed gratitude for the shared insights. (AI Summary)