E-WAY BILL ON SAMPLE RETURN

[DR.MARIAPPAN GOVINDARAJAN]

One company sent samples for export. The samples were submitted to airport by transporting from the company to airport. Eway bill was raised. IGST was paid. The sample could not be tested due to technical glitches in the airport for more than 2 months. The exporter did not want the sample and also the export order. Credit note was issued for the bill issued for export. Now the said samples are to be taken back to factory. While generating the E-way bill, since it is the transfer within the State, IGST has not been filled. Only CGST and SGST appears. What to do to bring the samples to the factory? Please advise.

[Padmanathan KV]

Sir,

In my opinion there is no supply involved in taking back the samples from airport to factory. Hence, Delivery challan and e-way bill shall be sufficient.

[Shilpi Jain]

If there was no confirmed export order while transporting the samples then no IGST is liable on the samples as there is no consideration.

Move the samples from airport to factory under cover of a DC without taxes mentioned. You can disclose the credit note in GSTR-1 and adjust in GSTR-3B

DC is a document for movement of goods. Credit note is document to be disclosed in returns

AI Summary

No supply: return of export samples can be moved under delivery challan and e way bill with tax adjustment. Movement of returned export samples after cancellation of the export order should be effected under a delivery challan with an e way bill without declaring IGST, since no supply or consideration exists; disclose the credit note in GSTR 1 and adjust in GSTR 3B to reverse the original invoice.