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Sale on Approval Basis

24 December 2020

If the registered person is a Manufacturer in Punjab and he mainly make sale in Uttar Pardesh on retail basis, then whether he can take goods from Punjab to UP under delivery challan with eway bill and raise Invoice there as he does not know the actual quantity of goods that can be sold there.

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5 Replies

Divya Simawat (4 Points)
Replied 25 December 2020

You can send goods on approval bases under Sec 31(7) of CGST Act 2017 without an invoice. But the invoice for such delivery shall be issued at the time when such supply is fructified or six months from the date of removal of goods from the godown which ever is earlier. After 6 months such delivery of goods will become deemed supply.

A delivery challan can be sent with e-way bill for such delivery irrespective of whether it is delivered intra state or inter state. Delivery challan shall be prepared in triplicate.

Anmol Singla (808 Points)
Replied 25 December 2020

Yes, I just want to know whether we can also send wearing apparel

Divya Simawat (4 Points)
Replied 25 December 2020

There is no specification of goods mentioned in the sec. which cannot be sent on approval basis. So yes apparels can also be sent.

Anmol Singla (808 Points)
Replied 25 December 2020

Thanx for your response

Gaurav SIngh (2 Points)
Replied 03 May 2023

In case of delivery challan is it possible to change the e-way bill amount in case when there is change in amount of delivery challan in case of rejection of some goods? Because when tax is filed the gst portal is updated automatically of the amount of delivery challan when dispatched whereas in final invoice the price is changed due to rejection of some goods. Thanks