Transit Sales

[YAGAY andSUN]

Can we change the description of goods under transit sale under CST Act while raising the commercial invoice to our customer?

Example  :- We receive an order of item 'X' from our customer.  For item 'X', we do order to our vendor of part of item 'X' say X1, X2 and X3. And ask our vendors to direct supply to our customer these items and we do endorse the relevant documents necessary for evidence of Transit Sale.

Now, the query is that whether at the time of raising commercial invoice to our customer, can we change the description of goods to 'parts of item X as we had obtained the order from our customer for item 'X'.

Please advice.

AI Summary

Changing Goods Description in Transit Sale Invoices Violates CST Act, Causes Tax Complications and Refund Issues. A participant in a discussion forum inquired whether it is permissible under the CST Act to change the description of goods on a commercial invoice during a transit sale. The scenario involved ordering parts of an item from vendors and having them shipped directly to the customer. The response clarified that the concept of a transit sale requires the movement of the same item without alteration to avoid tax complications. Therefore, changing the description on the invoice is not allowed, as the material description must remain consistent to prevent cascading tax effects and refund issues.