Hi
We used to despatch equipments to customer place for DEMO purposes frequently . These equipments cost are between 1 Lakh to 2 Lakh . We carry Delivery challan during transit .
Please advice any other documents are requirement to meet the statutory requirement
What is the GST rule to transit DEMO equipments ( Not for sale) within the state
Hi Rajesh,
For shifting your DEMO vehicles/equipment (not for sale) within the state, here’s what you should know about statutory and GST requirements:
Delivery Challan — This is the primary document required when goods are moved without sale (like for demo, job work, repair, etc.).
It should mention the descripttion of goods, quantity, value (can be zero or “not for sale”), reason for movement (Demo), and details of consignor and consignee.
Invoice — Not required if the goods are not sold and only on demo.
Insurance papers — Optional but recommended for safety.
Gate Pass or Internal Transfer Document — If your company has internal compliance for asset movement.
As per GST, movement of goods without consideration (i.e., no sale) requires a Delivery Challan.
The GST rate applicable on demo goods depends on whether demo is treated as supply or not:
If no consideration (sale) involved, no GST applicable on movement.
If demo attracts any fee or charges, GST applies on such charges.
At the time of return to your premises, you can carry a Return Delivery Challan for goods returning from demo.
Maintain proper record of demo goods movement (dispatch and return) for audit purposes.
Ensure that the delivery challan contains all necessary details.
GST audit and compliance require clear evidence that these goods are demo and not sold.
CAclubindia
