GOODS SENT TO INTERSTATE BRANCH FOR EXHIBITION ON DELIVERY CHALLAN & GOODS RETURN BACK

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When sending goods to an interstate branch for an exhibition using a delivery challan and e-way bill, it's crucial to record the movement in the books of both the sending and receiving branches. Although these movements don't constitute a 'supply' under GST and therefore don't incur GST liability, proper documentation like delivery challans and e-way bills, clearly stating 'For Exhibition', is essential. GST is only applicable if the goods are actually sold at the exhibition, requiring a tax invoice.

jigyasu

jigyasu (Querist)
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28 August 2025 Goods sent to Intersate branch(Delhi) for Exhibition on Delivery challan with EWB. after somedays same goods reurn by the intersate branch(Delhi) on Delivery challan with EWB....
i)is it compulsory to show material in entry in both branch ....
ii)GST liability/Treatment, if any

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 September 2025 The goods moved for exhibition do not constitute a "supply" under GST, as there is no consideration, but certain compliance steps must be followed regarding documentation and entries.

It is compulsory to record the entry of material in the books of both branches—the sending branch and the returning branch.
The sending branch (original location) will account for goods transferred to the Delhi branch for exhibition (usually shown as stock sent or material dispatched for exhibition).
The Delhi branch, although it does not take ownership, should record receipt of goods and subsequent return to the original branch when the exhibition ends.
Both shipment and return must be accompanied by delivery challans referencing the exhibition and the correct e-way bill documentation.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 September 2025 There is no GST liability for movement of goods sent for exhibition on a delivery challan (without sale), as such movement does not amount to a "supply" under GST, and therefore does not attract GST.
GST is only triggered if the goods are sold or deemed to be sold at the exhibition—in such cases, a tax invoice must be issued, and appropriate GST must be paid.
When the goods are returned, no GST liability arises as the original transaction was not a supply and both movements are covered by delivery challan and e-way bill, not tax invoice.
Ensure that the purpose "For Exhibition/For Demonstration" is explicitly mentioned in the delivery challan and e-way bill.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 September 2025 Good luck....

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