Karnataka HC Clarifies No GST on Machinery Returned to Seller for Testing Without Consideration - SAG Infotech Official Tax Blog

The Karnataka High Court held in its ruling dated June 25 that a company does not incur GST liability when it returns machinery to the seller for testing, provided that no fresh consideration is involved. The Court observed that such movement of goods does not constitute a taxable supply under the GST law and, therefore, does not attract GST. A Division Bench of Justices S.G. Pandit and Rajesh Rai…