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The transportation of goods is sometimes a tricky process as there are chances that items may go missing either due to theft or spillage, or any such reason. Documents such as delivery challans help track and verify all the contents of a particular shipment.
A delivery challan is a document that contains details of the products in that particular shipment. It is issued at the time of delivery of goods that may or may not result in a sale.
The delivery challan is issued in the following cases-
For example, the printing of newspapers.
For example, shifting of goods from the old warehouse to a new one.
This cannot be termed “supply” or “export” since the goods are going for a specific short term purpose and returning.
A tax invoice must be issued in a case where a registered taxpayer intends to transport goods from one place of supply to another as per the provisions of Section 31 of the CGST Act. Particulars regarding the invoice value, description of the goods supplied, their quantities, rates and amount and the GST applicable on them will form part of the tax invoice.
Certain cases arise where the transportation does not result in a sale, and hence there is no tax invoice issued. In these cases, instead of a tax invoice, a delivery challan is issued. Therefore, a delivery challan is a document that permits the transportation of goods from one place to another. It also goes by the name dispatch slip or delivery slip.
Rule 55 (2) of the CGST Rules, delivery challans must be issued in three copies as follows-
|Tax Invoice||Delivery Challan|
|Contains ownership proof and legal responsibilities.||Does not contain proof of ownership or legal responsibilities.|
|Shows the actual value of goods.||Shows that the customer has acknowledged receipt of the goods.|
|It is proof that a sale transaction has taken place.||May or may not result in a sale.|
|Depicts the actual value of the goods, including the applicable taxes.||Displays the rate of a particular product but not the full value of the sale.|
A delivery challan is usually issued by a seller to the buyer when making the delivery of goods. These goods that are being delivered may or may not result in a sale.
A delivery note is a mere document that accompanies a shipment of goods. Delivery challans, on the other hand, are issued while making a delivery of goods to the buyer and have an impact on the inventory levels since it decreases the inventory stock.
If a non-returnable gate pass accompanies the delivery challan, it helps the authorities understand that the goods are delivered permanently and cannot be returned.
Where the goods are transported out of the warehouse for a specific purpose and are due for return shortly, a returnable challan will be generated for the same.
Yes. Any registered taxpayer or transporter may generate an e-way bill using the GST portal. Tax invoice, bill of sale, delivery challan, etc., are some of the documents that can be provided when creating the e-way bill.