Delivery challan is issued for transportation of goods for transactions which are not sales under GST
  • Goods Sent to Own Branch with State having Same GST No
  • Goods Sent for Approval Basis (Goods first shown to customer if he agrees to buy it only then invoice issued)
  • Goods Sent for Exhibition Basis (Goods sent to Trade fair for display, it may or may not sell)
  • Goods Sent in Multiple Consignments (Single Invoice issued for multiple trucks, in this case, each truck carries delivery challan)
Branch Transfer Case- Tax Invoice or Delivery challan
Example 1
Suppose a company has 2 branches ,One in Delhi, other in Kolkata
For Both Branches, different GST no to be applied (as GST no is state vise)
If goods sent from Delhi to Kolkata, we need to issue proper Tax Invoice as it is sales under GST
Example 2
Suppose a company has 2 Branches, One in Rajouri Garden, Delhi
Other in Chandni chowk, Delhi
Both companies normally have same GST no as they are in same state
Suppose goods sent form Rajouri to Chandni Chowk
We cant issue tax invoice as both have same GST no
in this case, Delivery challan to be issued
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.