When Delivery challan can be issued in GST instead of tax invoice

In the following cases, a delivery challan in GST may be issued by the consigner instead of tax invoice;

  • Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,
  • Transportation of goods for job work
  • Transportation of goods for reasons other than by way of supply

GST Delivery challan should always be prepared in triplicate. The original copy should be marked as “ORIGINAL FOR CONSIGNEE”. The duplicate copy should be marked as “DUPLICATE FOR TRANSPORTER”. The triplicate copy should be marked as “TRIPLICATE FOR CONSIGNER”.

In the above cases the delivery challan should be serially numbered and issued at the time of removal of goods with following details;

  • Date
  • Serial number of the delivery challan
  • Name, address and GSTIN of the consigner, if registered
  • Name, address and GSTIN or UIN of the consignee, if registered
  • Description of goods and HSN code
  • Quantity supplied
  • Taxable value
  • Place of supply
  • GST rate and tax amount, where the transportation is for supply to the consignee
  • Signature of the authorized person

If goods are transported on a delivery challan in lieu of invoice, the same shall be declared in E-way bill.

Goods transported in semi or completely knocked down condition

If goods are transported in a semi knocked down or completely knocked down condition, or in batches or lots, then the supplier before dispatch of the first consignment, shall issue the complete invoice.

For each subsequent consignment, the supplier shall issue a delivery challan with reference to the invoice. A certified copy of the invoice must be attached to the corresponding delivery challan.

Original copy of the invoice must be sent along with the last consignment.

Delivery challan in case of jewellery and art work

In the case of jewellery, suppliers registered in one state may require to visit other states and need to carry such jewellery along with them for buyer’s approval. If buyer has approved, then the supplier issues a tax invoice at the time of supply. Similarly, jewellery are also carried within the same state for the purpose of supply.

In view of relevant provisions of rule 55, it is clarified that the goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery of goods. For this purpose, the person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified [Circular No. 10/10/2017 GST dated 18.10.2017].

Likewise, in cases where artists supply art works in different States – other than the State in which they are registered as a taxable person and if the artwork is selected by the buyer, then the supplier issues a tax invoice only at the time of supply, it is clarified that the artwork for supply on approval basis can be moved from the place of business of the registered person (artist) to another place within the same State 

or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of actual supply of artwork [Circular No. 22/22/2017 GST dated 21.12.2017].

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.