Sending goods on demo basis

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We have to send our Goods on Demo Basis to our customers. These Goods may be returned by the customers after Demo or it may be kept/purchased by them. So please guide about the documentations to be prepared in this case under GST LAW.
Replies (11)
You have to issue tax invoice while sending goods to your customers. In case of return of goods, a credit note can be issued to the customer.

But , whether it is possible to send the  goods merely on delivery challans. Because , If I send the goods on my GST Invoice , I have the doubt , customer will not raise his GST Invoice while sending these goods back to me ?

You are not allowed to issue goods on delivery challans.

But, as confirmed with our tax consultant what he is saying is ,  first to send the goods on deliverychallans mentioning that , " goods are send for demo / approval basis ,  not for sale".  If the goods are retained by the customer , he will raise the po and we will send our final GST  Invoice to him giving reference of our earlier delivery  challan.

If the goods are returned , the same should be returned within 6 months . For returning these goods back to us , he will prepare his delivery challan and will send the goods to us. 

Pl. guide whether it is possible  under GST LAW ??

But, as confirmed with our tax consultant what he is saying is ,  first to send the goods on deliverychallans mentioning that , " goods are send for demo / approval basis ,  not for sale".  If the goods are retained by the customer , he will raise the po and we will send our final GST  Invoice to him giving reference of our earlier delivery  challan.

If the goods are returned , the same should be returned within 6 months . For returning these goods back to us , he will prepare his delivery challan and will send the goods to us. 

Pl. guide whether it is possible  under GST LAW ??

You dont need any invoice from your customer who is returning the goods.

But, on the basis of which document  , shall I claim my Input Tax Credit under GST, if the goods are returned ??

You dont need any invoice from your customer who is returning the goods. 
 

But, on the basis of which document  , shall I claim my Input Tax Credit under GST, if the goods are returned ??  

 

You need to furnish your sales return on GSTR
You can use the credit note issued for this

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