DC (Delivery Challan)
This query is : Resolved
19 November 2024
Dear Sir,
Could you please clarify when to mention the tax value on the DC and when not to include it? Our customer has advised that we can raise the DC without the tax value, using an approximate taxable value. Please confirm if this is the correct procedure or not. Please guide me correct procedure for delivery challan under GST.
Could you please clarify when to mention the tax value on the DC and when not to include it? Our customer has advised that we can raise the DC without the tax value, using an approximate taxable value. Please confirm if this is the correct procedure or not. Please guide me correct procedure for delivery challan under GST.
Dhirajlal Rambhia
(Expert)
19 November 2024
Under the GST rules, a Delivery Challan (DC) is used to transport goods without immediately resulting in a sale. Here are the key points to consider:
When to Mention Tax Value: A tax invoice, which includes the tax value, is required when goods are transported from one place of supply to another. This is in line with Section 31 of the CGST Act.
When Not to Mention Tax Value: A delivery challan can be issued without a tax invoice in specific cases, such as:
Transportation of goods for job work.
Goods sent on approval basis (sale or return).
Transportation of goods for reasons other than supply (e.g., moving goods between warehouses).
Supply of liquid gas where the quantity is not known at the time of removal.
Transporting art works to galleries for exhibition.
In these cases, the delivery challan can be issued without mentioning the tax value or approximate tax value. However, it's important to ensure that the approximate taxable value is reasonable and complies with the relevant GST rules.
When to Mention Tax Value: A tax invoice, which includes the tax value, is required when goods are transported from one place of supply to another. This is in line with Section 31 of the CGST Act.
When Not to Mention Tax Value: A delivery challan can be issued without a tax invoice in specific cases, such as:
Transportation of goods for job work.
Goods sent on approval basis (sale or return).
Transportation of goods for reasons other than supply (e.g., moving goods between warehouses).
Supply of liquid gas where the quantity is not known at the time of removal.
Transporting art works to galleries for exhibition.
In these cases, the delivery challan can be issued without mentioning the tax value or approximate tax value. However, it's important to ensure that the approximate taxable value is reasonable and complies with the relevant GST rules.
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