Introduction
Businesses frequently send goods to exhibitions, trade fairs, and expos for display and promotion. The question arises: How are goods sent for exhibition treated under GST?
The answer is that goods sent for exhibition are not treated as supply if they are returned within the prescribed time limit. This guide explains the legal framework and the documentation requirements.
Legal Framework: CBIC Circular No. 108/27/2019-GST
Goods Sent for Exhibition
The CBIC Circular No. 108/27/2019-GST dated 18th July 2019 clarified that goods sent for exhibition are not treated as supply since there is no consideration at the time of sending.
Time Limit for Return
The goods must be returned within 6 months from the date of removal for exhibition. If the goods are not returned within 6 months, they are treated as supply.
Documentation Requirements
- Delivery Challan: For movement of goods for exhibition.
- E-Way Bill: For movement of goods above ₹50,000.
- Exhibition Documents: Documentation of the exhibition.
- Return Delivery Challan: For return of goods.
GST on Goods Sold at Exhibition
Where goods are sold at the exhibition, the sale is a taxable supply, and GST applies at the applicable rate.
Best Practices
- Issue Delivery Challans: Issue delivery challans for goods sent for exhibition.
- Track the 6-Month Period: Monitor the 6-month limit and issue invoices if goods are not returned.
- Maintain Records: Document all exhibition transactions.
- Seek Professional Assistance: For complex exhibition arrangements, seek guidance.
Conclusion
Goods sent for exhibition and trade fairs are not treated as supply if returned within 6 months. Delivery challans are required for movement. Where goods are sold at the exhibition, GST applies. Proper tracking and documentation are essential.
Sending goods for exhibition or trade fairs? Anuj Desai & Associates provides expert guidance on GST compliance. Contact us today.
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