CGST Circular 10/10/2017- Authorized officer for enrollment of GST Practitioner

CGST Circular 10/10/2017- Authorized officer for enrollment of GST Practitioner

Authorized officer for enrollment of Goods and Services Tax Practitioner

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Circular No. 10/10/2017-GST

CBEC - 20/16/03/2017-GST Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs GST Policy Wing

New Delhi, dated 18th October, 2017

To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/Commissioners of Central Tax (All) The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Clarification on issues wherein the goods are moved within the State or fromthe State of registration to another State for supply on approval basis Reg Various communications have been received particularly from the suppliers ofjewellery etc. who are registered in one State but may have to visit other States (other thantheir State of registration) and need to carry the goods (such as jewellery) along for approval.In such cases if jewellery etc. is approved by the buyer, then the supplier issues a tax invoice only at the time of supply. Since the suppliers are not able to ascertain their actual suppliesbeforehand and while ascertainment of tax liability in advance is a mandatory requirement forregistration as a casual taxable person, the supplier is not able to register as a casual taxableperson. It has also been represented that such goods are also carried within the same State forthe purposes of supply. Therefore, in exercise of the powers conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017, for the purpose of uniformity in theimplementation of the Act, it has been decided to clarify this matter as follows - 2. It is seen that clause (c) of sub-rule (1) of rule 55 of the Central Goods and ServicesTax Rules, 2017 (hereafter referred as the said Rules) provides that the supplier shall issuea delivery challan for the initial transportation of goods where such transportation is forreasons other than by way of supply. Further, sub-rule (3) of the said rule also provides that the said delivery challan shall be declared as specified in rule 138 of the said Rules. It is alsoseen that sub-rule (4) of rule 55 of the said Rules provides that Where the goods beingtransported are for the purpose of supply to the recipient but the tax invoice could not beissued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods. 3. A combined reading of the above provisions indicates that the goods which are takenfor supply on approval basis can be moved from the place of business of the registeredsupplier to another place within the same State or to a place outside the State on a deliverychallan 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 cancarry the invoice book with him so that he can issue the invoice once the supply is fructified. 4. It is further clarified that all such supplies, where the supplier carries goods from oneState to another and supplies them in a different State, will be inter-state supplies and attractintegrated tax in terms of Section 5 of the Integrated Goods and Services Tax Act, 2017. 5. It is also clarified that this clarification would be applicable to all goods suppliedunder similar situations. 6. It is requested that suitable trade notices may be issued to publicize the contents ofthis circular. 7. Difficulty, if any, in the implementation of the above instructions may please bebrought to the notice of the Board. Hindi version would follow.

(Upender Gupta) Commissioner (GST)