All you need to know about Delivery Challan

GST came and with it came a pool of new rules and provisions and it’s high time that we not only understand these rules and provisions but also get used to them. One of such provisions is a Delivery Challan, which is used at the time of movement of goods and services.

What is a Delivery Challan

When transfer or movement of goods and services take place between supplier and receiver but this transfer does not result in a sale or the payment against these goods and services is due, then in such cases delivery challan is issued instead of tax invoice.

Generally when the transfer of goods and services take place which results in actual sale and payment is made then a tax invoice is issued. But when such transfer does not result in an immediate sale then instead of a tax invoice a delivery challan is issued.

A delivery challan is issued by the supplier of the goods and services.

GST Delivery Challan Format

When a delivery challan should be Issued

A delivery challan is to be issued in the following cases:

  • Supply of goods for job work.
  • Supply of liquid gas where the quantity of the supply is unknown.
  • Movement of goods for reason other than the way of supply.
  • Other supplies as and when notified by Board.

On actual sale of goods, the supplier is required to issue a tax invoice.

Details included in a delivery challan

A delivery challan must include the following details:

  • Date of delivery challan.
  • Place of delivery challan.
  • Name, address, PAN, and GSTIN of the supplier.
  • Place of supply.
  • Name, address, and GSTIN of the consigner and consignee.
  • Unique Identity Number of the consignee.
  • Description of Goods or service.
  • HSN code and quantity of the goods
  • Total value, taxable value, the rate of Tax and amount of tax.

Delivery challan under GST should be serially numbered with a maximum of 16 characters and must be prepared in triplicate. First or the original copy should be marked as Original for Consignee. Second or the duplicate copy must be marked as Duplicate for Transporter and third or the triplicate copy is marked as Triplicate for Consignor.

E-Way Bill must be issued if the taxable value of goods supplied is more than INR 50,000.

Multiple Delivery Challans

When goods are delivered in parts, multiple delivery challans are issued. Method to be followed in such cases is as follows:

  • Original invoice should be issued before delivery of the first installment of goods.
  • Delivery challan must be issued with reference of the invoice for every subsequent delivery and should be accompanied by a copy of original invoice.
  • Copy of original invoice along with the challan should be sent to the receiver at the time of last delivery.

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