Goods sent on approval basis..

hai.. good morning..

kindly request you to clarify my query..

I have GST registration in Tamilnadu.. can i transfer my goods to my service provider located in Pondicherry by making delivery chellan without charging GST??

I don't wish to take new registration in Pondicherry, however my service provider is registered dealer in Pondicherry.

scope of my service provider is to store my goods bulk in his cold storage and deliver my goods to my customers as per my approval.. he will charge me separately for his service and transportation.

once supply is confirmed I want to make sales invoice from TN to my customers directly.. my service provider deliver the goods accordingly.

please suggest me good option.

Good morning Kamatchi!

Your query about transferring goods on approval basis to your service provider in Pondicherry without charging GST is a common scenario in GST. Let me break it down for you:

Key Points:

You are registered in Tamil Nadu (TN).
Your service provider is registered in Pondicherry.
You want to transfer goods to service provider without GST and avoid separate registration in Pondicherry.
Service provider stores goods and delivers to your customers based on your instructions.
You will invoice customers directly from TN.

GST Treatment:

1. Transfer of Goods to Service Provider (Job Work or Storage)

If goods are sent for job work or storage to a registered person in another state/UT, it is considered as inter-state transfer.
Normally, inter-state supply attracts GST.
However, if you send goods on approval or for job work, you can transfer without payment of GST by using Delivery Challan and following certain rules.

2. No Separate Registration Required

As per GST law, if goods are sent to your job worker in another state/UT, you may not need separate registration in that state, provided:
- You transfer goods on delivery challan.
- Goods are returned after job work.
- You maintain proper records.

3. Approval Sales & Delivery

Since sales happen only after customer approves:
- Goods sent on approval basis can be transferred to service provider using Delivery Challan (without GST invoice).
- Once customer approves and sale happens, you raise sales invoice from your TN GST registration.
- The service provider delivers goods to your customers on your behalf.

4. Separate Charges for Services

Your service provider will charge you separately for:
- Storage
- Transportation
- Other services
These services are taxable under GST as services received from a supplier in another state (Pondicherry).

Summary & Steps:

Step	Action
Transfer goods to service provider	Use Delivery Challan without GST invoice for inter-state movement
No GST on this transfer	Since goods are not sold but transferred for storage/delivery
Service provider invoice	Separate GST invoice for storage/transport services
Sale to customer	Invoice from TN GST registration after customer approval
No separate GST registration	Required in Pondicherry if goods not sold there, only stored/processed

Important:

Maintain proper records of delivery challans.
Make sure the service provider is GST registered.
You may want to inform your GST officer or consultant for compliance clarity.
If goods are not returned or sale happens in Pondicherry, separate registration may be needed.