All you need to know about GST Delivery Challan

Posted by TaxGuru India on October 26th, 2018

What is delivery challan under GST?

Under GST Act, the documentary evidence which is needed for the transportation of goods from one place to another is called Delivery Challan (when such supply doesn't result in an immediate sale under GST or payment of such supply is not to be received.) This article lets you know everything about delivery challan under GST andwewould also touch upon GST delivery challan format.

For an example, Mr. X sends 1000 pieces of steel sheets to Mr. Z to give the steel sheets a round shape. This supply of steel sheets doesn't result in an immediate sale to Mr. Z.

Hence a delivery challan is documentary evidence which lists the number of goods delivered and the payment against such supply is not received immediately.

To make it quite simple to understand – an invoice is a bill which is issued when there is a supply of goods and/or service between seller and buyer whereas, a challan is a note which is issued by the seller to the recipient that the goods being dispatched without payment of GST.

When is delivery challan under GST issued?

1. When Goods are transported for job work
2. When the supplier's place of business is not known for the quantity of the supply of liquid gas
3. When goods supplied on approval.
4. To determine the quantity of goods at the time of dispatch.
5. Such other supplies as notified by the government.

Delivery Challan Issuing Procedure

Delivery Challans must be issued in triplicate and it must be serially numbered not exceeding 16 characters. Three copies of challans are to be prepared in the following manner:

a)      The Original copy of the Challan is for the Consignee,

b)      The Duplicate copy of the Challan is for the Transporter,

c)      The Triplicate copy of the Challan is for the Consigner.

GST delivery challan format has few specific requirements that need to be followed as per the GST rules:

• Date and serial number of delivery challan
• Name, address, and GSTN of the seller
• Place of Supply
• Name, address, and GSTN of the consigner
• HSN code that describes the goods being delivered
• Quantity and UQC
• The total value of the goods, the Taxable value of the goods
• The rate of Tax, Amount of Tax
• Signature and,
• Delivery challan in lieu of invoice, if issued in lieu of invoice on each Delivery Challan

Multiple Delivery Challans

In cases where goods are dispatched in instalments or parts, multiple challans are issued. However, where goods are sent in instalments or in parts then the following procedure should be followed:

1. The Original invoice must be issued by the supplier before the first delivery of goods.
2. For every subsequent consignment, separate delivery challan referring to the first invoice must be issued.
3. The Original challan along with the invoice must be sent on the last delivery to the receiver.

Status of Delivery Challan

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