Delivery challan & Eway Bill

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This query is : Resolved

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When sending taxable materials to your own site for internal use via a Delivery Challan, it's not considered a supply under GST. While the Delivery Challan itself doesn't require GST rates and amounts as per Rule 55, the E-way bill preparation needs careful consideration. The consensus is to declare the value and GST amount for disclosure purposes on the E-way bill, even though no tax is payable as it's not a supply.

CA. Niranjan Kumar

CA. Niranjan Kumar (Querist)

24 September 2020 We send some taxable material to own site for own use through Delivery Challan. It is not a supply under GST,
so as per Rule 55 of CGST, we do not mention Gst rate and amount in Delivery Challan. (Rule 55 says clearly gst rate and amount is mandatory in case transpiration to consignee is in nature of supply)

My query is: should we use Not applicable Gst rate while preparing Eway bill over portal or 0 rate?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 September 2020 Use not applicable, as it's not a supply.

Lekhraj sood

Lekhraj sood (Expert)

24 September 2020 Yes, it is to be transported under cover of a challan under rule 55. You have to mention the value of material and GST thereon on the challan. It is only disclosure, you don't need to pay it as it is not a supply.

Message likes : 1 times

CA. Niranjan Kumar

CA. Niranjan Kumar (Querist)

24 September 2020 Thank You Sir for your valuable suggestion, but as per CGST Rule 55 (1)(d)(vii), we have to mention tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee.
In our case, transportation is not for supply to the consignee. So we do not mention tax rate and tax amount in Delivery challan.

Lekhraj sood

Lekhraj sood (Expert)

24 September 2020 I agree with your point as in your case it is not for supply.

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