issue delivery challan under gst

Issuing Delivery Challans in GST

Last Update Date : April 27, 2019
Estimated Read Time: 3 min

issue delivery challan under gst

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.

What is Delivery Challan?

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.

When is Delivery Challan issued?

  1. Supply of goods on approval.
  2. To determine the quantity of goods at the time of dispatch.
  3. Transportation of goods for job work.
  4. When the place of business of the supplier is unknown for the quantity of the supply of liquid gas
  5. Other than supply, the reasons for transportation of goods.

After issuing delivery challan for the transportation of goods, the tax invoice has to be issued by the supplier on delivery of goods.

Delivery Challan Format and Required Fields

The following information is required to create a delivery challan:

  1. Date and number of the delivery challan.
  2. Name, address, PAN and GSTIN of the supplier, if registered.
  3. Name, address, PAN and GSTIN or Unique Identity Number of the purchaser, if registered.  Name, address and place of supply, if unregistered.
  4. HSN code for the goods, description of goods, Quantity of goods and UQC.
  5. Total taxable value, rate of tax, amount of tax.
  6. Name, address and GSTIN of the consigner, the GST tax rate and amount of tax.
  7. Name, address and GSTIN or Unique Identity Number of consignee, if registered.
  8. Place of supply, in case of inter-state transfer of goods.
  9. Delivery Challan in lieu of invoice’ on each delivery challan if issued in lieu of invoice.
  10. In case of taxable amount of the goods exceeds Rs. 50000/-, a GST E-WAY bill must be issued by the supplier.
  11. Signature

Delivery Challan Issuing Procedure

Delivery Challans must be serially numbered not exceeding 16 characters, in one or multiple series. 3 copies are to be prepared, following;

  1. Original copy for the Consignee,
  2. Duplicate copy for the Transporter,
  3. Triplicate copy for the Consigner.

Multiple Delivery Challans

In cases where goods are send in parts or installments, multiple delivery challans are issued. In such cases, the following procedure should be followed;

  1. Complete invoice must be issued before the first consignment of goods.
  2. The consigner must issue delivery challan on each of the subsequent consignments, with reference to the first invoice.
  3. Original challan must be sent on the last delivery along with copies of all the delivery challans from the first consignment.

Status of Delivery Challan

Status Description
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.

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CA Ankita Mathur
CA Ankita Mathur
Ankita, a Big 4 alumna, is a tax expert at H&R Block (India) with vast experience in managing GST-related business services. An avid traveller, Ankita is a regular contributor to the CAclubindia and loves helping people understand about GST and helping companies be GST compliant.