Globalization means the global expansion of a market economy, it is the only way we can guarantee success globally. Many nations are just so small that unless they sell their goods and services in the global market, they will never be able to develop their country. They don’t have an internal market big enough to sustain themselves. For the development of such nations, the government collects taxes on the sale of goods and services provided. In India, the government has recently introduced GST (Goods and Services Tax).
GST aims at replacing central and state taxes and has a common market platform with a simple tax structure. GST will act as a major boost to economic efficiency, tax compliance and domestic and foreign investment. This guide will how to create and issue delivery challans at the time of transaction of goods and services.
In a situation where the goods and services are being transported from one place to another, which may or may not be considered as sale, a GST Delivery Challan is created.
After issuing delivery challan for the transportation of goods, the tax invoice has to be issued by the supplier on delivery of goods.
The following information is required to create a delivery challan:
Delivery Challans must be serially numbered not exceeding 16 characters, in one or multiple series. 3 copies are to be prepared, following;
In cases where goods are send in parts or installments, multiple delivery challans are issued. In such cases, the following procedure should be followed;
|Draft||when the delivery challans are created, they are kept open in draft.|
|Dispatch||Goods have been dispatched/sent for delivery.|
|Delivery||Goods have been delivered.|
|Return||Goods delivered have been returned to the consignee.|
Recording the Return on Delivery Challan:
In case of goods not considered to be a sale, you record the return of goods that are delivered but not billed.
In case, the consumer accepts a part of the goods and returns the remaining, the part of goods accepted are to be recorded.
Delivery challans are one of the important documents issued at the time of transfer of goods. For your queries relating to the issuance of challans and all your GST related queries, enlist the aid of the experts at H&R Block India.