A “Declaration of Goods Sent on Approval Basis” isn’t a common term itself, but it likely refers to the process of reporting goods sent to a customer with the option to return them. This falls under the concept of “Sale on Approval Basis” within the GST framework.

Here’s a breakdown:

• Sale on Approval Basis: This is a business practice where a seller sends goods to a potential buyer who can decide to keep the items (considered a sale) or return them within a specified timeframe.
• Reporting Requirement: While there isn’t a separate declaration form, businesses registered under GST might need to report these transactions electronically depending on the situation.

Here’s what you might need to know:

• GST Invoice: A tax invoice needs to be issued for the goods sent on approval basis. The timing depends on whether the goods are kept or returned:
  • Before or at the time of supply (when the buyer keeps the goods)
  • Within 6 months from the date the goods leave your premises (if there’s no sale)

It’s important to note that these are general points. For specific details and regulations, it’s advisable to consult a tax advisor or refer to official GST resources.

Examples

There isn’t a universally standardized format for a “Declaration of Goods Sent on Approval Basis.” However, a document outlining such a transaction can be created to ensure clarity between seller and buyer. Here’s an example of what it might include:

Declaration of Goods Sent on Approval

This declaration is made on [Date] by [Seller Name] (hereinafter referred to as “Seller”) and [Buyer Name] (hereinafter referred to as “Buyer”).

Goods

• Description of Goods: [Detailed description of the items being sent]
• Quantity: [Number of units]
• Value: [Total value of the goods]

Approval Basis

• The Seller agrees to send the aforementioned goods to the Buyer on an approval basis.
• The Buyer has [Number] days from the receipt of the goods to decide on their purchase.

Return of Goods

• If the Buyer chooses not to purchase the goods, they must be returned to the Seller within the approval period mentioned above in undamaged condition.
• The Buyer is responsible for the return shipping costs.

Payment

• If the Buyer decides to keep the goods, they will be invoiced for the full value mentioned above.
• Payment terms (e.g., net 30 days) should be clearly stated.

Other Considerations

• You may want to include a clause about any risk or damage to the goods during the approval period.
• Specify who is responsible for insurance during this time.
• If there are any specific conditions for the Buyer’s approval (e.g., functionality testing), these should be outlined.

Signatures

This declaration is signed by both parties below:

• Seller: [Signature] [Printed Name]
• Buyer: [Signature] [Printed Name]

Note: This is a sample format, and you may need to modify it based on your specific needs and applicable regulations. It’s always recommended to consult with a lawyer to ensure your declaration is legally sound.

Case laws

• Declaration of goods sent on approval basis: This refers to a specific declaration mandated under the GST rules (possibly Rule 117 to 120) for registered persons dealing with goods sent for approval (customer has the option to return them).
• Case Law: These are legal precedents established by court decisions in past disputes.

There might be GST rulings or clarifications issued by authorities on the process of handling goods sent on approval basis. However, these wouldn’t be considered case law in the traditional sense.

If you’re interested in learning more about the declaration process for goods sent on approval basis, refer to the official resources of the Department of Goods and Services Tax (DGST) or consult with a tax professional.

Faq questions

• A seller sends goods to a buyer with the understanding that the buyer can keep them if they’re satisfied (approval), or return them if not (return).
• No formal declaration is typically required, but some sellers might include a packing slip or invoice mentioning “Sent on Approval” or “Sale on Return” terms.

Here are some examples of how this might be communicated:

• Packing Slip:” These items are sent on approval. You have 10 days to decide if you’d like to keep them. Please notify us by [date] for a return or consider the purchase finalized.”
• Invoice:” Sale on Approval – [List of Items]. Payment due only if you decide to keep the items.”

Remember, these are informal examples. The specific terms and timeframe for approval/return would be determined by the seller’s policy.

Revision of declaration in form Gst tran-1

• Opportunity: There was a one-time window between October 1st and November 30th, 2022, to revise the initial GST TRAN-1 filing. This window is now closed.
• Purpose: Use revisions to rectify any errors or omissions in the originally submitted claim for pre-GST VAT credit.
• Limitations: Revisions can typically be done only once.

Current Scenario (as of March 30, 2024):

Since the revision window is closed, you cannot modify your GST TRAN-1 electronically at this time. However, you can still reach out to the tax authorities for guidance if you believe there’s a significant error in your original filing.

Example

The GST portal allows revising a previously filed Form GST TRAN-1 under specific circumstances. Here’s an example to understand the process better:

Scenario:

Let’s say a company, ABC Ltd., initially filed Form GST TRAN-1 in December 2017, claiming a specific amount of input tax credit (ITC) on pre-GST stock. However, upon further review in March 2024, they discover an error in the quantity of stock reported, leading to an incorrect ITC claim.

Revision Process:

1. Access GST Portal: Login to the GST portal using your company’s GST Identification Number (GSTIN).
2. Navigate to TRAN Forms: Locate the section for filing GST TRAN forms.
3. Revise TRAN-1:Look for the option to revise a previously filed TRAN-1. The portal might provide a downloadable copy of the original declaration for reference.
4. Correct Errors: Update the section with the mistake. In this case, ABC Ltd. would modify the quantity of stock held, leading to a revised ITC claim.
5. Supporting Documents: Include any documents that support the revisions made, such as revised stock records.
6. Submit Revised Form: Submit the revised Form GST TRAN-1 electronically with a digital signature or Electronic Verification Code (EVC).

Important Points:

• There was a limited window in 2022 for revising TRAN-1 forms based on a Supreme Court order. Check with a tax advisor for the current revision timelines.
• Revisions can only be made once. Ensure the revised declaration is accurate to avoid further complications.
• Consult a tax professional for guidance on revising Form GST TRAN-1, especially for complex situations.

Remember, this is a simplified example. The specific revision process and requirements might vary depending on the nature of the error and current GST regulations.

Case laws

• Jakap Metind Pvt Ltd vs Union Of India Through The Secretary (on October 4, 2019): This case clarifies that revision of Form GST TRAN-1 is allowed under Rule 120A of the CGST Rules. The revision can be done within the period specified for filing the form or any further extension granted by the Commissioner.

Important Note: This case also highlights that the revision period is bound by the filing deadline and any extensions, not the 90 days mentioned in the rules.

• Directions by Supreme Court (October 2022): While not strictly a case law, this Supreme Court directive allowed a specific window for taxpayers to file or revise their TRAN-1 forms between October 1 and November 30, 2022. This window provided an opportunity for those who missed the initial deadline or had errors in their filings.

These are the key cases related to revision of Form GST TRAN-1. It’s important to remember that GST regulations can change, so consulting with a tax professional for the latest guidance is recommended.

Faq questions

Can I revise the declaration filed in Form GST TRAN-1?

As of March 30, 2024, the functionality to revise the information submitted in Form GST TRAN-1 is not yet enabled on the GST portal.

Here’s what we know from available information:

• Earlier stance: Initially, there was no provision for revising details in Form GST TRAN-1.
• Current status: While there have been discussions about enabling revision, the system update for allowing revisions hasn’t been implemented yet.

What are my options if I need to make changes to the information filed?

There isn’t a confirmed way to directly revise the form yet. Here are some possibilities:

• Consult a tax advisor: Discuss your situation with a tax professional for guidance on the best course of action. They might suggest waiting for the revision functionality or explore alternative solutions based on your specific situation.
• Contact GST authorities: You can reach out to the GST authorities to inquire about any updates on revision capabilities or seek alternative solutions for handling discrepancies.

Are there any resources for further information?

• While official resources might not explicitly mention revision yet, you can stay updated by following the official GST portal announcements
• You can find discussions about the revision request in some tax professional forums: “[search gst tran 1 revision forum]” (Remember, I cannot provide specific URLs).