Transportation of goods without issue of invoice [Delivery challan Rule 55 of CGST Rules] - GST Ready Reckoner - GST

Transportation of goods without issue of invoice As per rule 55 of CGST Rules , goods may transport without issue of invoice Following Situation in which, where goods transport without issue of invoice (a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known, (b) transportation of goods for job work, (c) transportation of goods for reasons other than by way of supply, or Goods sent on approval basis - Circular No.10/10/2017 dated 18.10.2017 Transporting Art Work to various galleries - Circular No. 22/22/2017 dated 21.12.2017 Sending goods outside India for exhibition or for export promotion Circular No. 108/27/2019-GST dated 18.07.2019 Transfer of Goods in Multiple Shipments Tax invoice could not be issued at the time of removal (d) such other supplies as may be notified by the Board, Particulars content in delivery challan Consignor may issue delivery challan for the goods transportation without issue of invoice. The delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation,. Delivery challan containing the following details, namely:- date and number of the delivery challan; name, address and Goods and Services Tax Identification Number of the consigner, if registered; name, address and Goods and Services Tax Identification Number or Unique Identity Number of the consignee, if registered; HSN code and description of goods; quantity (provisional, where the exact quantity being supplied is not known); taxable value; tax rate and tax amount central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee; place of supply, in case of inter-State movement; and signature. Transport in semi Knocked condition:- Where the goods are being transported in a semi knocked down or completely knocked down condition or in batches or lots - (a) the supplier shall issue the complete invoice before dispatch of the first consignment; (b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice; (c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and (d) the original copy of the invoice shall be sent along with the last consignment. Other provisions The delivery challan shall be prepared in triplicate. Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared in e-way bill [as specified in rule 138] . 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. [ Circular No. 10/10/2017-GST] . The activity of sending / taking specified goods out of India on sale on approval basis is not a supply. Wherein the goods are sent / taken outside India for the approval of the person located abroad and it is only when the said goods are approved that the actual supply from the exporter located in India to the importer located abroad takes place. The activity of sending / taking specified goods is covered under the provisions of section 31(7) of the CGST Act read with rule 55 of CGST Rules. The specified goods shall be accompanied with a delivery challan issued according to rule 55 of the CGST Rules. the activity of sending / taking specified goods out of India is not a zero-rated supply . That being the case, execution of a bond or LUT, as required under section 16 of the IGST Act, is not required. [ Circular No. 108/27/2019-GST] FAQ and clarification Where free replacement is provided to the customers without consideration (free of Cost) under warranty, no GST chargeable on such replacement. in such case goods may be sent on delivery challan. [Q.18 FAQ by CBIC-Part IV] While sending demonstration equipment and instrument to customer or branch offices with in india on returnable basis without involving any sale and transfer of title, it is not a supply of goods. if some element of services is involved, the same will be taxable supply. the goods may be sent on delivery challan (also e-way bill). [Q.21 FAQ by CBIC-Part IV] Similarly, equipment and instrument to manufactures factory can be sent for repair and calibration with in india on returnable basis without involving any sale using using delivery challan. [Q.22 FAQ by CBIC-Part IV] Illustrations: i) M/s ABC sends 100 units of specified goods out of India. The activity of merely sending / taking such specified goods out of India is not a supply. No tax invoice is required to be issued in this case but the specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the CGST Rules. Where the goods brought back:- In case the entire quantity of specified goods is brought back within the stipulated period of six months from the date of removal, no tax invoice is required to be issued as no supply has taken place in such a case. Where the good nor brought back:- In case, however, the entire quantity of specified goods is neither sold nor brought back within six months from the date of removal, a tax invoice would be required to be issued for entire 100 units of specified goods in accordance with the provisions contained in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules within the time period stipulated under section 31(7) of the CGST Act. Illustrations: ii) M/s ABC sends 100 units of specified goods out of India. The activity of sending / taking such specified goods out of India is not a supply. No tax invoice is required to be issued in this case but the specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the CGST Rules. when partially goods sold :- If 10 units of specified goods are sold abroad say after one month of sending / taking out and another 50 units are sold say after two months of sending / taking out, a tax invoice would be required to be issued for 10 units and 50 units, as the case may be, at the time of each of such sale in accordance with the provisions contained in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules. When remaining goods nor brought back:- If the remaining 40 units are not brought back within the stipulated period of six months from the date of removal, a tax invoice would be required to be issued for 40 units in accordance with the provisions contained in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules. Refund claim of ITC:- M/s ABC may claim refund of accumulated input tax credit in accordance with the provisions contained in section 54(3) of the CGST Act read with rule 89(4) of the CGST Rules in respect of zero-rated supply of 60 units.