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April 7, 2024

GST: Movement of Jewellery to Various Shops for Marketing Purposes

sales teams frequently visit various shops for marketing purposes. However, predicting which retailer might be interested in purchasing jewelry remains uncertain. To address this, a GST delivery challan is used as per Rule 55. Instead of specifying the recipient’s address directly, the recommended approach is to mention the following details on the delivery challan: Name of the authorized representative: This should be the person carrying the jewelry for marketing purposes. Address of the authorized representative: Include the representative’s address. Authorization letter: Attach an authorization letter to validate the representative’s role. Purpose: Clearly state that the movement is for Line Sales Within the State (Telangana), specifically involving jewelry being transported to various shops within the local limits of Hyderabad. Please note that while this recommendation is practical, legally, the issue of line sales is not explicitly addressed. However, Rule 55 does require mentioning recipient details along with their GSTIN (if registered).

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