TaxTMI 
TaxTMI 
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
14 Apr 2023 
7 Replies 
4420 Views Asked by
Export of goods: returnable shipments may trigger export compliance and LUT obligations, not automatic zero-rated treatment.
Characterisation of returnable goods sent outside India depends on whether goods taken out of India are treated as export of goods under the IGST Act and whether a supply has occurred; if treated as export, invoice issuance and the Letter of Undertaking (LUT) mechanism apply, whereas zero-rated treatment requires an underlying supply. Delivery Challan use and Customs compliance are relevant operational considerations. (AI Summary)
Characterisation of returnable goods sent outside India depends on whether goods taken out of India are treated as export of goods under the IGST Act and whether a supply has occurred; if treated as export, invoice issuance and the Letter of Undertaking (LUT) mechanism apply, whereas zero-rated treatment requires an underlying supply. Delivery Challan use and Customs compliance are relevant operational considerations. (AI Summary)