Co sends goods to FR against approval basis against a challan as per the GST law. The nature of this challan is not to be treated as a stock transfer note. FR sells the product on a future date say 5 days after receipt of goods. Post selling the goods CO raises a TAX invoice on FR.
Benefit- Co saves on the advance tax being paid as GST on day 1 when the goods is being sent to the FR
Co will raise the Tax invoice and the FR will stand as a debtor account in Co’s books
FR will sell the goods against his GSTN no outside the state
We need to asceratin how will the above be mapped in software against a managed site/ FR store.
Refer point 3 on the web link https://taxguru.in/goods-and-service-tax/gst-clarification-movement-goods-approval-basis.html