Delivery Challan Under GST with Format and Issuing Method

Meaning of Delivery Challan Under GST

Delivery challan is also known as a delivery slip or a dispatch challan. It is an important document created for the transportation of goods from one place to another which may or may not result in sales. Delivery challan under GST is sent along with the goods and it contains important details of the transported goods i.e. the quantity, buyer, and delivery address. This document is issued by the supplier in cases where the sale of goods or services does not happen immediately or when paying for the transported goods is not received on supply.

Section 31 of CGST Act 2017 stats that a registered person supplying goods which are taxable, need to issue a tax invoice indicating the quantity, details, value of goods, tax charged on good etc. along with other details which are stated in Sec 31(1) of CGST Act 2017. Similarly, for the transportation of goods, the Delivery challan needs to be issued instead of a tax invoice.

Examples: When delivery challan under GST can be issued for the transportation of goods without a tax invoice

Rule 55 (1) of CGST Rules contains some instances when delivery challan can be issued for transportation of goods even 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: Delivery challan is required for supplying goods by:
  • Principal to a job worker
  • One job worker to another job worker
  • Return of goods after job work to Principal
• Transportation of goods for reasons other than by way of supply: There are some instances when the transportation of goods are needed even before the supply takes place.

Read Also: GST Invoice & Payment Voucher in Reverse Charge Mechanism of CGST Act Get to know about the payment voucher and GST invoice under the reverse charge mechanism (RCM) in CGST Act 2017. Also, we included the definition of payment vouchers with inclusions. Read More

Cases Where GST Delivery Challan is Must for the Transportation of Goods

Goods Sent on Approval Basis: If the goods are being sent or taken within or outside the State on approval for sale or return basis and are removed before the supply takes place, Delivery Challan needs to be issued at the time of departure of the goods.

Transporting Art Work to Various Galleries: Artists transports their artworks to various galleries for exhibition and sell purposes from such galleries. if the artwork gets a buyer then, in this case, the artworks from one gallery to another within or outside the state will be transported with delivery challan.

Sending Goods Outside India for Exhibition or for Export Promotion: Circular No. 108/27/2019-GST by CBIC dated 18.07.2019 stats that if the goods are being transported out of India for an exhibition or on a consignment basis. Then these types of exports are neither ‘supply’ nor ‘export’ basis. Thus LUT or bond is not required instead of that these types of exports will come under Delivery Challan.

Transfer of Goods in Multiple Shipments: Where goods are being transported in multiple shipments. In these cases, the supplier should issue the complete invoice before dispatch of the first consignment and along with a delivery challan for each of the subsequent consignments, reference of the invoice need to be mentioned in each of them.

Tax Invoice Could Not be Issued at the Time of Removal: In cases where goods are being transported to the recipient but the tax invoice could not be issued at the time of departure of the goods. Rule 55(4) of CGST and SGST Rules, 2017 stats that the supplier can issue a tax invoice after delivery of goods.

GST E- Way Bill: In cases where carrying an e-way bill under GST Know the details on blocking and unblocking e-way bill feature for non-filers of GST return. Also, we solved general queries through important frequently asked questions. Read more is not necessary under Rule 55A of CGST Rules included w.e.f. 23-1-2018 as well as when tax invoice of Supply is not required, Delivery Challan is required.

Format of Delivery Challan Under GST

The document needs to be serially numbered. However, the number of digits must be under sixteen characters, in one or multiple series. All the delivery Challan must have all the following information:

• Date (of challan and transportation) and the number of delivery challan
• Name, address and GSTIN of the consigner, if registered.
• If registered: Name, address and GSTIN or Unique Identity Number of the consignee. If unregistered then name, address, and place of supply.
• HSN code for the goods
• Description of goods
• Quantity of goods supplied (Optional, If the exact quantity being supplied is not known)
• The taxable value of supply
• GST tax rate and tax amount divided for CGST, SGST, IGST Get the brief introduction of SGST, IGST and CGST. We have mentioned their full forms, meanings and adjustments of input tax credit under GST in India, and GST Cess – where the transportation is for supply to the consignee
• Place of supply, in case of inter-state movement of goods
• Signature

Method to Issue Delivery Challan Under GST

According to Rule 55 (2) of CGST Rules, Delivery challans under GST will need to be in triplicate as below:

• The original copy for the buyer needs to be marked as ORIGINAL FOR CONSIGNEE.
• The duplicate copy for transporter should be marked as DUPLICATE FOR TRANSPORTER.
• The triplicate copy for the seller should be marked as TRIPLICATE FOR CONSIGNER.
• That’s everything about the Delivery Challan under GST, In this article, we talked about the procedure for issuing delivery challan and about the format of delivery challan under GST in detail. If you have any query then feel free to ask using the comment section.