All you need to know about GST Delivery Challan
Posted by taxguru 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?
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:
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:
Status of Delivery Challan
.Also See: Delivery Challan, Steel Sheets, Gst Delivery, Documentary Evidence, Gst, Goods, Delivery
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