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Everything thing to Know About Bill of Supply and Delivery Challan under GST

As per Rule 138A of CGST Rules, The person in charge of a conveyance while transporting goods, must carry among other documents:

  • Invoice, or

  • Bill of Supply where applicable (in terms of Section 31(3)(c) read with Rule 49),or

  • Delivery Challan where applicable (Rule 55)

In this article we will discuss circumstances & situations when Bill of Supply or Delivery Challans are required to be issues:

Bill of Supply (Rule 49)

As per Section 31(3)(c), in following circumstances, Bill of Supply needs to be issued:

(c) a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue (i.e. composition dealer), instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed :

Provided that the registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;

It is not applicable where Un-Registered Person supply such goods or service.

Further, Rule 49 prescribes the particulars to be included in the Bill of Supply like GSTN of Supplier & Recipient if Registered, Consecutive Serial Number, Date of Issue etc.

Any tax invoice or any other similar document issued under any other Act for the time being in force (For instance Invoice under Central Excise/VAT for Supply of Petrol) in respect of any non-taxable supply shall be treated as a bill of supply for the purposes of the Act.

Delivery Challan where applicable (Rule 55)

Rule 55 prescribes the following situations where Delivery Challan is required for Transportation of goods without issue of invoice:

For the purposes of-

(a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,

(b) transportation of goods for job work,

(c) transportation of goods for reasons other than by way of supply (like Free Gifts, for Exhibitions etc.), or

(d) such other supplies as may be notified by the Board, the consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, (No such notification issued till date).

(3) Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared as specified in rule 138 .

(4) Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.

(5) Where the goods are being transported in a semi knocked down or completely knocked down condition or in batches or lots -

(a) the supplier shall issue the complete invoice before dispatch of the first consignment;

(b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;

(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and

(d) the original copy of the invoice shall be sent along with the last consignment.

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Disclaimer: We have taken due care to the best of our knowledge while explaining the provisions surrounding the issue purely for informational/academic purpose. It should not be considered as professional advice or consultancy to be relied upon. While due care has been taken by Fab Gyan in preparing this article, certain mistakes and omissions may creep in. The Fab Gyan or its Author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon.

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