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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.
GST
Goods sent on approval or for job work
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Provisions
Rule 55, CGST Rules 2017; Rule 56, CGST Rules 2017
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.
Close
- Issue a numbered delivery challan for the goods.
- Record them as stock out on approval.
- Issue an invoice for goods accepted.
- Record returns back into stock.
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