Clarification on movement of goods under GST for supply on approval basis
Central Board of Excise & Customs has issued the Circular No. 10/10/2017- Central Tax dated 18/10/2017 and has clarified the issues wherein the goods are moved within the State or from the State of registration to another State for supply on approval basis. It has been clarified that-
- Goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery of goods. For this purpose, the person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified.
- Where the supplier carries goods from one State to another and supplies them in a different State, will be inter-state supplies and attract integrated tax in terms of Section 5 of the Integrated Goods and Services Tax Act, 2017
This clarification would be applicable to all goods supplied under similar situations.
Source : Central Board of Excise & Customs