07 July 2019
Please advise on the below case If a GST Registered Person ABC (Prop. firm) have sold goods to Reliance Stores all over India on SOR Terms. here SOR Terms means Sale or Return Basis i.e. if goods remain unsold to end customer then it will be return back to ABC. Now problem is that 100000 Lac Pcs remain unsold in different stores at different states. meanwhile ABC decided to quit its Proprietorship firm and willing to start business with Existing another partnership firm XYZ.
Reliance will return back the goods to ABC in books virtually (not actual movement of goods) ABC will release tax invoice to (XYZ new Partnership firm) for the same goods. (No movement of Goods) XYZ will release tax invoice to Reliance only in books (no actual movement) but goods will not be removed from Reliance stores. if the said virtual transfer of goods is a valid supply in terms of GST and ITC will be eligible for the said transfer of goods.
08 July 2019
Dear Sir, Thanks for your reply... I want to discuss this issue in detail, kindly provide your contact details. Thanks in advance for your kind support.
CAclubindia
