Subject: EWAY/GST Query - Vehicle Movement from Haryana to Delhi (Non-Sale)

[vaibhav kumar]

Dear Sir/Madam,

I am a registered two-wheeler dealer in Haryana. We plan to transport around 50 vehicles (Honda Activa) to a multi-brand outlet in Delhi for display/sales purposes. This movement is not a sale, and invoices will be issued only at the time of actual sale to customers from Haryana.

Kindly advise on:

• The correct GST procedure for such inter-state movement without sale
• Requirement and basis of e-way bill (e.g., delivery challan)
• Necessary documents to carry during transit
• Any compliance risks or conditions to be aware of

Looking forward to your guidance.

Regards,

VAIBHAV

[YAGAY andSUN]

The proposed inter-State movement of motor vehicles from Haryana to Delhi, without consideration and without transfer of title, constitutes movement of goods otherwise than by way of supply under the Central Goods and Services Tax Act, 2017.

In terms of Section 7 of the CGST Act, 2017, the transaction does not qualify as "supply" at the time of dispatch, being devoid of consideration and not falling within deeming provisions. However, if the Delhi location is separately registered, the transaction may attract provisions relating to "distinct persons" under Section 25 of the CGST Act, 2017.

The movement shall be effected under a delivery challan in accordance with Rule 55 of the CGST Rules, 2017, clearly indicating that the goods are moved for display purposes and not for sale. The challan must contain complete particulars including description, quantity, and value for transit.

Generation of an e-way bill is mandatory under Rule 138 of the CGST Rules, 2017, where applicable, based on the delivery challan, specifying the transaction as "others" or equivalent.

During transit, the person in charge shall carry the delivery challan, valid e-way bill, and transporter documents. Goods must be identifiable with reference to the accompanying documents.

At the time of actual sale, a tax invoice shall be issued in terms of Section 31 of the CGST Act, 2017, and tax liability shall be determined in accordance with Section 10 of the IGST Act, 2017.

It is necessary to examine whether the Delhi location constitutes an additional place of business or triggers registration. Continuous storage and supply from Delhi without registration may invite adverse inference.

Proper reconciliation of goods dispatched, sold, or returned must be maintained. Return of unsold goods shall be supported by delivery challan and e-way bill.

Non-compliance with documentation may result in action under Section 129 of the CGST Act, 2017. The arrangement must not result in transfer of possession amounting to a deemed supply.

AI Summary

GST compliance for inter-State vehicle movement without sale requires delivery challan, e-way bill, and proper transit documentation. Inter-State movement of motor vehicles from Haryana to Delhi for display or sales purposes, without consideration and without transfer of title, is movement of goods otherwise than by way of supply at dispatch. The movement should be covered by a delivery challan and, where applicable, an e-way bill generated on the basis of that challan. During transit, the challan, e-way bill, and transporter documents must be carried, and at actual sale a tax invoice is issued. Continuous storage or supply from Delhi may raise registration issues, and non-compliance may attract action.