Posted on by abhishek

Do I have to issue an invoice even if I remove goods for ‘sale on approval basis’?

  1. In such cases, as per section 31(7) of the CGST Act, 2017, tax invoice need not be raised at the time of removal.
  2. This is because it is not certain (at the time of dispatch of goods) that the sending of goods will result in a ‘supply’.
  3. However, on or before the confirmation of the supply by the other party, the tax invoice has to be issued.
  4. The law provides a time limit of 6 months from the date of removal, during which the goods will not be treated as supplied.
  5. Where no confirmation is received within such period, a tax invoice should be issued on the day immediately succeeding the 6-month period.

(ICAI FAQ PUBLICATION 06-09-2017 -: Tax Invoice, Credit and Debit Notes : FAQ NO. 7)