Delivery Challan Under GST

Overview of challan delivery in the GST system

Also known as the delivery slip or the delivery challan is the transportation challan. The document is crucial for the transfer of products from one location to another that can or may not result in sales. The products are sent with the delivery challan under gst billing and contain crucial data about commodities carried, such as the amount, purchaser and destination of delivery. This document is given by the provider if there is no immediate sale of goods or services or if the products are not received at the time of delivery when the delivery is paid.

Section 31 of CGST Act 2017 states that, in conjunction with the further information set out in Article 31(1) of CGST Law 2017, a registered person selling taxable goods is required to submit tax invoices showing the amount, detail, value of goods, tax charge for goods etc. The Delivery Challan must also be issued, rather than a tax invoice, for the conveyance of goods.

Examples: If delivery under GST can be provided without a tax invoice for transportation of goods

The Definition of a Delivery Challan

A delivery challan is a document that is generated during the conveyance of products from one location to another, which may or may not result in sales. This is sent in addition to the shipping products. It comprises information on the products delivered, the amount of those goods, the customer, and the delivery address. In most cases, three copies of the gst challan format are made:

Original: For the purchaser.

Duplicate: This is for the transporter.

Triplicate: For the salesperson.

Delivery Challan Issuance

A delivery challan may be issued in the following circumstances:

  • Goods will be sent upon approval.
  • Goods on their way to a job site.
  • Goods carried for purposes other than supply. Transportation of products from one warehouse to another of the supplier’s warehouse, for example.
  • Products supply: A situation in which the quantity of goods delivered is unknown. Supply of liquid gas, when the quantity of provision from the supplier’s location is unknown at the moment of supply.
  • Transportation of mid products.

A Delivery Challan’s Contents

A delivery challan generally includes the following information:

  • Dates of challan and transportation.
  • The serial number of the challan is required. It makes it easier to recognise and refer to a challan. Sender and receiver’s names, addresses, and GSTINs. If the recipient is not registered, the location of his business must be specified.
  • HSN Code, Description, Quantity, Taxable Value, GST Rate, GST Amount subdivided into CGST, IGST, SGST, and Cess.
  • Signature of the sender or an authorised representative of the sender.
  • Transportation specifics such as source and vehicle number.