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GST Delivery Challan – Procedure for Issuing & Format

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. The 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.

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:

In caase of supply of goods with a taxable value of more than Rs.50,000, a GST E-way bill must be issued by the supplier.

Procedure for Issuing Delivery Challan

Delivery challans must be prepared in triplicate. The original copy must be marked as ORIGINAL FOR CONSIGNEE. The duplicate copy must be marked as DUPLICATE FOR TRANSPORTER. The triplicate copy must be marked as TRIPLICATE FOR CONSIGNER.

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, a complete invoice should be issued before dispatch of the first consignment. After the first shipment, the supplier must issue a delivery challan for each of the subsequent consignments, giving reference of the invoice. Thus each consignment should be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice. The original copy of the invoice should be sent along with the last consignment.

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