Gst invoice on sale of goods but without movement

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narendra

Accountant

193 Points Posted on 16 August 2019

We have sold certain goods to a buyer on credit and issued GST invoice, but he failed to take delivery of goods due to space and logistical constraints.

We were about to cancel the sales BUT he requested us to keep the goods in our warehouse till he finds a suitable place and promised he will fully settle the invoice within the stipulated time we have allowed him.

The total sales value is one lakh rupees + GST. Since the goods din not leave our warehouse we have not yet issued e-way bill.

Is this sales allowed under GST or we are supposed to cancel the sales and the sales invoice ?

Replies (3)

Kunal Mittal

FINANCE OFFICER

431 Points Posted on 16 August 2019

This is allowed. E way bill is issued on movement of goods and here there is no movement of goods hence no e way bill.

narendra

Accountant

193 Points Posted on 17 August 2019

Dear Kunal, Thank you for the response.

From what it seems, the buyer is in no hurry to pick up the goods, he can take 1 to 2 months. Because the customer has good reputation with us we will accommodate his request.

Since goods are already sold (ownership of goods already transferred) I just want to make sure on the following :-

1) Are WE required to issue e-way bill later on when the buyer wants to pick up his goods ? (the buyer is an unregistered party)

2) Also, does e-waybill portal allow mentioning invoice date which is 1-2 months earlier ?

Thank you for your kind attention.