Documents required to shift our DEMO vechile

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:

Documents required during transit:

1. 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.

2. Invoice — Not required if the goods are not sold and only on demo.

3. Insurance papers — Optional but recommended for safety.

4. Gate Pass or Internal Transfer Document — If your company has internal compliance for asset movement.

GST rules for Demo goods movement within state:

• 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.

Important points:

• 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.