Supply of goods without physical movement

This query is : Resolved

CA GIRISH (Querist)
Follow

07 July 2019 Please advise on the below case
If a GST Registered Person ABC (Prop. firm) have sold goods to Reliance Stores all over India on SOR Terms.
here SOR Terms means Sale or Return Basis i.e. if goods remain unsold to end customer then it will be return back to ABC.
Now problem is that 100000 Lac Pcs remain unsold in different stores at different states.
meanwhile ABC decided to quit its Proprietorship firm and willing to start business with Existing another partnership firm XYZ.

Reliance will return back the goods to ABC in books virtually (not actual movement of goods)
ABC will release tax invoice to (XYZ new Partnership firm) for the same goods. (No movement of Goods)
XYZ will release tax invoice to Reliance only in books (no actual movement)
but goods will not be removed from Reliance stores.
if the said virtual transfer of goods is a valid supply in terms of GST and ITC will be eligible for the said transfer of goods.

Waiting for your advise.

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

08 July 2019 All the transactions are supply of goods. Appropriate amount of GST shall be payable and the recipient shall be entitled to ITC.

CA GIRISH

CA GIRISH (Querist)
Follow

08 July 2019 Dear Sir,
Thanks for your reply...
I want to discuss this issue in detail, kindly provide your contact details.
Thanks in advance for your kind support.

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

12 July 2019 Mail me on rajesh@rklegal.org

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now