The Central Board of Excise and Customs (CBEC) has issued clarification wherein it relaxed the rules for movement of goods, including jewellery, within a state or outside along with an e-way bill, for sale on an approval basis.
Such movements take place even for business exhibitions and such events where actual sale may or may not happen.
A department missive issued on Wednesday clarified that the goods taken for supply on an approval basis could be moved from the place of business of the registered person to another place within the same state or outside the state under the cover of a delivery challan.
It was clarified that as per Rule 55 of the Central Goods and Services Tax Rules, 2017, the goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery of goods. For this purpose, the person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified.
It was further clarified that “all such supplies, where the supplier carries goods from one State to another and supplies them in a different State, will be inter-state supplies and attract integrated tax in terms of Section 5 of the Integrated Goods and Services Tax Act, 2017.”
“This clarification would be applicable to all goods supplied under similar situations,” the Board said.
Read the Full Taxt of the Circular Below
