GST Clarification on Moving Goods for Supply on Approval Basis – Circular No. 10/10/2017-GST
<h3><strong>Key Highlights from CBIC Circular No. 10/10/2017-GST</strong></h3><p>On <strong>October 18, 2017</strong>, the <strong>Central Board of Excise and Customs (CBIC)</strong> issued <strong>Circular No. 10/10/2017-GST</strong>, providing clarity on <strong>GST compliance for businesses moving goods for supply on approval basis</strong>. The circular addresses concerns raised by <strong>jewellery suppliers</strong> and other businesses who transport goods to different states for potential sales but only issue invoices after customer approval.</p><h3><strong>1. Movement of Goods on Approval Basis Allowed with a Delivery Challan</strong></h3><ul><li>Businesses transporting goods for supply on approval (within the same state or across states) <strong>can move them using a delivery challan</strong> instead of a tax invoice.</li><li>The goods must be accompanied by an <strong>e-way bill</strong> wherever applicable.</li></ul><h3><strong>2. Invoice Issuance at the Time of Final Sale</strong></h3><ul><li>If a buyer <strong>approves the goods</strong>, the supplier can issue a <strong>tax invoice at the time of delivery</strong>.</li><li>The person carrying the goods <strong>must have an invoice book</strong> to issue an invoice on the spot when the sale is confirmed.</li></ul><h3><strong>3. Inter-State Supplies Attract IGST</strong></h3><ul><li>If goods are supplied in a state <strong>different from the supplier's registered state</strong>, it is treated as an <strong>inter-state supply</strong> and <strong>attracts IGST</strong> under <strong>Section 5 of the IGST Act, 2017</strong>.</li><li>This applies to all types of goods transported for sale under similar conditions.</li><li><a href="https://cms.plasament.com/storage/chirag-singla/circularno-10-gst.pdf">circularno-10-gst</a><br> </li></ul>