Gold and jewellery delivery one place another place take it

This query is : Resolved

P.K.BEHERA

P.K.BEHERA (Querist)
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07 November 2017 I am a gold wholesaler. My staff normally travels to retailer’s door to door for selection of
goods, selected goods are then sold with a sales invoice. How will my goods be taxed when
they are out to retailers for booking orders, before sale is final? gold delive challan must be done yes or not briefly describe.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 November 2017 Sale on approval basis under GST regime

Unlike consignment sales, sales on approval basis are not deemed as supplies under GST. Hence, in such a scenario, the principal can send the goods to the agent by issuing a delivery challan instead of a tax invoice, and without charging GST on the same.

However, once the goods are sold by the agent to the end customer, it implies that the agent has accepted the goods received on approval. Once this sale has been ratified by the agent, the principal can then issue the tax invoice, and charge GST. The agent, at his end, can collect the purchase invoice, and avail the input tax credit on the GST paid, while filing his returns and paying the output GST liability to the government. Balance amount of tax if any, can then be paid via cash.

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