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“removal” in relation to goods, means-
(a) despatch of the goods for delivery by the supplier thereof or by any other person acting on behalf of such supplier; or
(b) collection of the goods by the recipient thereof or by any other person acting on behalf of such recipient;The term “removal’’ is relevant on in the case of supply of goods. Under the Central Excise Rules, 2002, the term ‘removal’ also included the act of issue of the goods for captive consumption. However, under the GST law, there must be a supplier, and a recipient who is distinct from the supplier. Therefore, removal of goods used within the factory would not constitute an outward supply (while input tax credit restriction implications could arise).
Under the GST law, the significance of this term arises for raising invoice, which in turn, is an element essential to determine the time of supply. The law clearly specifies that the removal need not be effected by the supplier himself, but could also be a result of collection of the goods by the recipient or a person acting on his behalf. Further, this term would be relevant only to the extent of supplies requiring movement of goods.
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