Introduction: In some cases where the sale of goods or services does not happen immediately or when payment is not received on supply, delivery challan is issued by the supplier. In this article, we look at the procedure for issuing delivery challan and delivery challan format in detail.
When Delivery Challan is Issued?
A GST tax invoice is issued usually when supply of goods or services is made or when payment has been made by the recipient.
For services, tax invoice must normally be issued within 30 days of delivery of service mandatorily.
In some cases, instead of a tax invoice, a delivery challan is issued for transportation of goods.
As per Rule 55 (1) of CGST Rules, following are instances when delivery challan can be issued for transportation of goods without an invoice:
After the goods have been transported using a delivery challan, the supplier is required to issue a tax invoice on delivery of goods as per time prescribed by law.
Delivery Challan Format
Delivery challans must be serially numbered not exceeding sixteen characters, in one or multiple series.
The following information must be mentioned in all delivery challan formats:
2Procedure for Issuing Delivery Challan
As per Rule 55 (2) of CGST Rules, Delivery challans must be prepared in triplicate as below:
As per Rule 55 (3), where supply of goods with a taxable value of more than Rs. 50,000, a GST E-way bill must be issued by the supplier as per Rule 138.
Relaxation for issuance of Tax invoice
As per Rule 55(4), 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.
Transfer of Goods in Multiple Shipments
In case of transfer of goods in multiple shipments, where the goods are being transported in a semi knocked down or completely knocked down condition-
The author is a practising CA based in Delhi and is registered Insolvency Professional. He can be reached at firstname.lastname@example.org , Mob. +91 9953587496.
Disclaimer: The views expressed in this article are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.