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Demonstration

Shivani (Learner) (1881 Points)

12 January 2019

dear members

mr X sends a good to Y for demonstration purpose.

Y will have a look at the product and send it back.

the purpose is not to sell.

will it be a supply under gst and taxable.

in gst stock transfer is taxable (inter-state) which was not the case in case of VAT/CST.

so pls guide will it be supply under gst and taxable?

also will eway bill be required and if yes on basis of what document will eway bill be prepared

regards

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2 Replies

vikash dhanuka (66 Points)
Replied 12 January 2019

e way bill will be generated irrespective of purpose provided value of goods exceeds 50000

CA Abhilash N (Chartered Accountant) (265 Points)
Replied 12 January 2019

Dear Shivani,

In GST supply means, supply includes all forms of supply of goods or services made for consideration in course or furtherance of business.

In terms of Schedule I, if supply of goods or services between related persons even without consideration would amounts to supply.

In terms of rule 55 of CGST Rules, If the transportation of goods for reasons other than by way of supply, in such case delivery challan to be issued instead of tax invoice.

And e-way bill to be generated for movement of good.

If the goods are not supplied and sent for demonstrating and would receive back, then goods could be transported by generating e-way bill on the basis on delivery challan.