Delivery Challan under GST

[CA.VINOD CHAURASIA]

Introduction: In some cases where the sale of goods or services does not happen immediately or when payment is not received on supply, delivery challan is issued by the supplier. In this article, we look at the procedure for issuing delivery challan and delivery challan format in detail.

When Delivery Challan is Issued?

A GST tax invoice is issued usually when supply of goods or services is made or when payment has been made by the recipient.

 For services, tax invoice must normally be issued within 30 days of delivery of service mandatorily.

In some cases, instead of a tax invoice, a delivery challan is issued for transportation of goods.

As per Rule 55 (1) of CGST Rules, following are instances when delivery challan can be issued for transportation of goods without an invoice:

• Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known.
• Transportation of goods for job work.
• Transportation of goods for reasons other than by way of supply.
• Other supplies as notified by the Board.

After the goods have been transported using a delivery challan, the supplier is required to issue a tax invoice on delivery of goods as per time prescribed by law.

Delivery Challan Format

Delivery challans must be serially numbered not exceeding sixteen characters, in one or multiple series.

The following information must be mentioned in all delivery challan formats:

• Date and number of the delivery challan.
• Name, address and GSTIN of the consigner, if registered.
• Name, address and GSTIN or Unique Identity Number of the consignee, if registered. If unregistered, name, address and place of supply.
• HSN code for the goods.
• Description of goods.
• Quantity of goods supplied (provisional, where the exact quantity being supplied is not known).
• Taxable value of supply.
• GST tax rate and tax amount broken down as CGST, SGST, IGST and GST Cess – where the transportation is for supply to the consignee.
• Place of supply, in case of inter-state movement of goods.
• Signature.

Procedure for Issuing Delivery Challan

As per Rule 55 (2) of CGST Rules,  Delivery challans must be prepared in triplicate as below:

• The original copy must be marked as ORIGINAL FOR CONSIGNEE.
• The duplicate copy must be marked as DUPLICATE FOR TRANSPORTER.
• The triplicate copy must be marked as TRIPLICATE FOR CONSIGNER.

E-way Bill

As per Rule 55 (3), where supply of goods with a taxable value of more than ₹ 50,000, a GST E-way bill must be issued by the supplier as per Rule 138.

Relaxation for issuance of Tax invoice

As per Rule 55(4), where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.

Transfer of Goods in Multiple Shipments

In case of transfer of goods in multiple shipments, where the goods are being transported in a semi knocked down or completely knocked down condition-

• a complete invoice should be issued before dispatch of the first consignment.
• after the first shipment, the supplier must issue a delivery challan for each of the subsequent consignments, giving reference of the invoice.
• each consignment should be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice, and
• the original copy of the invoice should be sent along with the last consignment.

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The author is a practising CA based in Delhi and is registered Insolvency Professional. He can be reached at [email protected] , Mob. +91 9953587496.