A Delivery Challan Format is important in the ongoing communication between the buyer and the vendor. According to Section 31 of the CGST Act of 2017, everyone registered to provide or transport taxable goods or products must provide an invoice with the amount and other pertinent information. Likewise, an issue of delivery challan is necessary for the shipping and transportation of products. A delivery challan, also known as a dispatch challan, is a legal document that contains all the required information to deliver a product, including its quality, quantity, and description. This paper also includes the delivery time, place, and date. It is essential to mention that it is attached to the items being shipped or transported.
Meaning of Delivery Challan Under GST
A delivery challan is often called a dispatch challan or a delivery slip. It is a crucial document for moving products from one location to another, which could or could not lead to sales. The delivery challan, sent with the goods by GST registration, includes crucial information about the transported goods, such as the quantity, buyer, and delivery address. When a sale of products or services is delayed or payment for the transported goods is not made at the time of supply, the provider will issue this document.
According to Section 31(1) of the CGST Act 2017, a registered person who supplies taxable goods must produce a tax invoice that includes the products’ amount, specifications, value, and tax rate, among other information. Similarly, an issue of delivery challan rather than a tax invoice must be given to convey goods.
Examples include situations in which a GST delivery challan might be issued to convey goods without a tax invoice.
Delivery challans for the transportation of goods may be granted in certain circumstances under Rule 55 (1) of the CGST Rules, even in the absence of an invoice:
- Liquid gas supply for which the amount at the time of removal from the supplier’s place of business is unknown.
- Transporting items for employment: The following people must supply the goods:
- Principal to an employee
- From one job seeker to another
- following job completion, return of products to the principal
- Transporting commodities for purposes other than supplying: There are several situations where it is necessary to transfer items before they are provided.
Cases Where GST Issue of Delivery Challan is Must for the Transportation of Goods
Details about the products being transported are listed in a products and Services Tax (GST) delivery challan. As mandated by the GST rules in India, it is frequently utilised throughout the transportation of products to ensure seamless movement and delivery. In several situations, a GST Issue of Delivery Challan is required:
Products Sent on Approval Basis:
Delivery If products are being shipped or taken on approval for sale or return and are done so before the supply is made, challans must be supplied at the moment the products leave the state.
Moving Artwork to Different Galleries:
To display and sell their works, artists relocate their artwork to other galleries. Delivery challans will move the artwork from one gallery to another inside or beyond the state if it sells.
Sending Goods Outside India for Exhibition or Export Promotion:
According to CBIC’s Circular No. 108/27/2019-GST, published July 18, 2019, if the products are being shipped outside of India for an exhibition or on a consignment basis. Then, neither the “supply” nor “export” foundation applies to these types of exports. Therefore, a LUT or bond is not necessary; instead, the issue of delivery challan will apply to these kinds of shipments.
Transfer of Goods in Multiple Shipments:
When packages of items are being shipped out separately, the supplier must send the entire invoice before sending the first shipment, and each successive shipment must include an issue of delivery challan that includes a note referencing the invoice.
Tax Invoice Could Not be Issued at the Time of Removal:
When delivery of the products to the recipient is in progress, the tax invoice was not available at the time of departure. According to Rule 55(4) of the CGST and SGST Rules, 2017, the supplier is permitted to submit a tax invoice following the delivery of goods.
GST E-Way Bill Issue of Delivery Challan :
Delivery Challan is required when carrying an e-way bill under GST is not required under Rule 55A of the CGST Rules, which went into effect on January 23, 2018, and when a tax invoice of Supply is not required.
Format of issue of Delivery Challan Under GST
The file must have a serial number. However, the total amount of digits in one or more series must be less than sixteen characters. For every delivery, Challan has to have all of the following data:
- Date, transportation challan number, and delivery challan number
- Name, address, and GSTIN, if registered, of the consignor.
- Name, address, and GSTIN, or Unique Identity Number, of the consignee, if registered. Name, address, and point of supply if unregistered.
- The product’s HSN code
- Details of the goods
- Goods supplied in terms of quantity (optional if the precise amount supplied is unknown)
- The tax rate and tax amount for CGST, SGST, IGST, and GST are split by the taxable value of the supply. Cess: while supplies are being transported to the consignee.
- In the event of interstate transit of goods, the location of supply
- Signature
Method to Issue of Delivery Challan Under GST
Delivery challans filed under the GST must be in triplicate as shown below, in accordance with Rule 55 (2) of the CGST Rules:
- The buyer’s original copy must be marked as ORIGINAL FOR CONSIGNEE.
- It is necessary to indicate DUPLICATE FOR TRANSPORTER on the duplicate copy.
- It is necessary to designate the triplicate copy for the seller as TRIPLICATE FOR CONSIGNER.
Conclusion
The issue of delivery challan is a crucial document that guarantees the precise and prompt delivery of products from the seller to the buyer in commercial logistics. Businesses can preserve transparency, allow easy transactions, and create a strong supply chain management system by adhering to the established protocol for issuing and adopting the standard format. The procedure can be greatly streamlined by being aware of the subtleties of the delivery challan, which also helps to reduce errors and promote efficiency across the board in corporate operations.
