Answer

1. F

   Facts

   Goods sent on approval, for job work or between your own places move on a delivery challan. Record them separately until they are sold or come back.

2. P

   Provisions and law

   • Rule 55, CGST Rules 2017Delivery challan for movement of goods without a supply, such as on approval or for job work
   • Rule 56, CGST Rules 2017Details of records: supplies, stock, advances, tax paid, ITC and names of suppliers and buyers, kept at each place of business
3. A

   Analysis

   Rule 55 allows a delivery challan for such movement, and Rule 56 needs stock records. Example: 20 sarees sent to a boutique on approval; record the challan, then convert to an invoice for the ones sold and take back the rest. For sale on approval, the invoice must be issued when the buyer accepts, and within the time allowed in law.

4. C

   Conclusion

   1. 1Issue a numbered delivery challan for the goods.
   2. 2Record them as stock out on approval.
   3. 3Issue an invoice for goods accepted.
   4. 4Record returns back into stock.

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