Consignment Sales (Customer Consignment)

• Consignment sale refers to goods which are delivered to the consignee where the ownership of the goods still remains with the supplier (consignor) and on the basis that the goods will be sold on the behalf of and at the risk of the consignor.

• Normal features of the consignment sale:
  - tow parties involves, i.e: consignor and consignee
  - consignor entitled to receive all the expenses in connection with the consignment
  - consignee is not responsible for damage of goods during transport or any other procedure
  - Goods are sold at the risk of consignor

e.g:
06 July 2015 : Sent Out goods to consignee
15 Sept 2015 : Sold
30 Sept 2015 : Date of Statement (Basic Tax Point); Issue Tax Invoice within 21 days; Account for Output Tax based on tax Invoice Date
06 July 2016 : Unsold; Account for Output Tax

• Consignor has to account for GST
  - When it becomes certain that a supply has taken place, or {the time when the consignor receives a statement of sales from the consignee that the goods had been sold}
  - 12 months after the removal of the goods, whichever is the earlier

• Time of Supply
  - Date of the tax invoice where the tax invoice was issued within 21 days of the date of consignor receives the statement of sales
  - If tax invoice issued after 21 days, time of supply is date of statement of sale