Mere acceptance of joint custody of goods does not amount to supply

Last updated: 23 December 2021
Quick Summary
The AAR, Madhya Pradesh ruled that simply holding goods in joint custody, without any ownership rights or privileges, does not qualify as a 'supply' for GST purposes. This decision was made in a case where goods were destroyed by fire before delivery and full payment. The Authority clarified that a supply requires the actual transfer of possession and ownership, and goods that no longer exist cannot be supplied.

Court :
AAR, Madhya Pradesh

Brief :
The AAR, Madhya Pradesh in the matter of M/S. Mohammad Arif Mohammad Latif (Advance Ruling Order No. 03/2021 dated June 17, 2021) held that, that mere acceptance of joint custody of goods without rights, privileges of ownership of goods does not amount to supply.

Citation :
Advance Ruling Order No. 03/2021 dated June 17, 2021

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Bimal Jain
Published in GST
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