GST Delivery Challan Meaning

GST Delivery Challan Meaning

Delivery challan can also be called a delivery slip, or a dispatch certificate. It is an important document that allows goods to be transported from one place into another.Delivery challans under GST. It is included with the goods. It contains important information about the transport goods, such as: It contains important details about the goods, such as: quantity, buyer and delivery address. The supplier issues this document in the event that the sale of goods and services is delayed or when payment for the transport goods has not been received on supply.

Section 31 of the 2017 CGST Act states that a registered person supplying goods that are taxable must issue a tax invoice indicating quantity, details, and value of the goods, as well as any tax paid on them. Along with the other details set forth in Sec 31(1) CGST Act 2017. The Delivery challan must be used for transportation of goods.

Here are some examples:A delivery challan can be issued under GST for transportation of goods without the need to issue a tax invoice.

Rule 55 (1) of the CGST Rules outlines some situations where delivery challans can be issued for transport of goods without invoice.

  • Liquid gas supply where the quantity at time of removal from the business location of the supplier is unknown.
  • Transport of goods for work: A delivery challan is required to supply goods by:
    • Principle to a job-seeker
    • One worker can be a job-holder for another.
    • After job work, goods returned to the Principal
  • Transport of goods other than supply: In some cases, transportation of goods is necessary even before supply occurs.

For the transportation of goods, GST Delivery Challan is required in these cases

Goods sent on an Approval BasisDelivery Challan must be issued at the time the goods leave the country if they are being shipped or taken in or out of the state on an approval for sale/return basis.

Transporting art work to various galleries:Artists move their artworks to different galleries to be displayed and sold. If the artwork is purchased, then the artworks will be shipped with delivery challans.

For Exhibitions or Export Promotions:Circular No. Circular No. 108/27/2019 – GST by CBIC, dated 18.07.2019 states that goods must be transported out of India on an exhibition basis or on a consignment base. These types of exports do not fall under either the’supply’ or ‘export’ categories. This means that LUT or bond are not required. However, these types of exports will be under Delivery Challan.

Transfer of goods in multiple shippings:If goods are being transported in multiple consignments. If goods are being transported in multiple shipments, the supplier must issue the full invoice prior to dispatching the first consignment. Each subsequent consignment will require a delivery challan. Reference of the invoice should be made in each consignment.

At the time of removal, a tax invoice could not be issuedIf goods are being shipped to the recipient and the tax invoice cannot be issued at the time the goods leave the warehouse. The supplier may issue a tax invoice following delivery under Rule 55(4) of CGST or SGST Rules 2017.

GST E-way BillIf carrying anGST e-way billIt is not required under Rule 55A of the CGST Rules. 23-1-2018, as well as whenTax invoiceDelivery Challan is required, but not Supply.

GST Delivery Challan Format

Serial numbers are required for all documents. The number of digits in the serial number must not exceed sixteen characters. The following information must be included on all delivery Challans:

  • Date (of transportation and challan) and number of delivery challans
  • If registered, name, address, and GSTIN for the consignor.
  • If you are registered, name, address, and GSTIN (Unique Identity Number) of the consignee. Name, address, and the place of supply will be required if you are not registered.
  • HSN code to identify the goods
  • Description of goods
  • Quantity of goods provided (Optional, if the exact quantity is not known)
  • The supply’s taxable value
  • GST tax rate and tax amount for CGST,SGST,IGST and GST Cess are divided – where transportation is for supply to consignee
  • In the event of inter-state goods movement, place of supply
  • Signature

Method of issuing Delivery Challan under GST

Delivery challans for GST must be submitted in triple copies according to Rule 55(2) of CGST Rules.

  • It is important to mark the original copy as ORIGINAL for CONSIGNEE on the copy that you are giving to the buyer.
  • You should mark the duplicate copy for transporter as DUPLICATE TO TRANSPORTER.
  • The seller’s triplicate copy should be marked TRIPLICATE FOR CONSIGNER
  • This is all about the Delivery Challan in GST. In this article we discussed the process for issuing delivery Challans and the format of delivery Challans under GST. You can ask any question using the comments section.

Nicholas Jansen