GST rules eased for goods movement for approval-based sale, jewellers cheer

Move seen as a big relief for jewellers who earlier faced many issues in sending their products through marketing or sales representatives on an approval basis

The government has relaxed the good and services tax (GST) rules for movement of goods, including jewellery, within a state or outside along with an e-way bill, for sale on an approval basis. Such movements take place even for business exhibitions and such events where actual sale may or may not happen.

In a GST circular issued on Wednesday, the government clarified that the goods taken for supply on an approval basis could be moved from the place of business of the registered person to another place within the same state or outside the state under the cover of a delivery challan.

All India Gems and Jewellery Foundation President Nitin Khandelwal say this as a major relief for jewellers. He said: "This is a big relief. Jewellers sending their products through their marketing or sales representatives on an approval basis faced many issues earlier. Also, for jewellers who participated in B2C (business to customers) exhibitions outside the state of their registration, ascertainment of actual supplies in advance and payment of tax liability was a mandatory requirement for registration as casual taxable person."

According to the circular, a person carrying goods for such supplies can carry an invoice book so that he can issue the invoice once the supply is fructified.