Movement of Goods
This query is : Resolved
26 September 2025
Under an EPC contract : Customer is requesting component for Quality Check at his Delhi office. Contractor has accordingly informed its Subcontractor at Bangalore for the same. now Subcontractor will supply the Goods to Customer's Delhi office and after Quality Checks Subcontractor will arrange to move the component from Delhi to Production Factory at Maharashtra. In this Scenario what will be the Documents required from Sub Contractor Side under GST.
My Opinion is : Contractor will issue one PO to Subcontractor under Bill to (MH) /Ship to (DL) model. After Quality Checks Customer (DL) will issue a Non returnable Delivery Challan to Contractor's Maharashtra Factory.
Kindly advise.
My Opinion is : Contractor will issue one PO to Subcontractor under Bill to (MH) /Ship to (DL) model. After Quality Checks Customer (DL) will issue a Non returnable Delivery Challan to Contractor's Maharashtra Factory.
Kindly advise.
28 September 2025
Documents for Movement of Goods: Bangalore to Delhi (Quality Check)
Delivery Challan: Since the initial movement from Bangalore to Delhi is for quality check and not 'sale', the subcontractor should issue a delivery challan as per GST rules, clearly mentioning the reason as "sending for quality check" or "testing".
E-way Bill: An e-way bill is mandatory for inter-state movement of goods valued above ₹50,000, even for movement on delivery challan and not against a tax invoice.
Supporting Documents: Copy of any communication/letter from the main contractor or customer requesting the quality check can be attached for clarity.
Delivery Challan: Since the initial movement from Bangalore to Delhi is for quality check and not 'sale', the subcontractor should issue a delivery challan as per GST rules, clearly mentioning the reason as "sending for quality check" or "testing".
E-way Bill: An e-way bill is mandatory for inter-state movement of goods valued above ₹50,000, even for movement on delivery challan and not against a tax invoice.
Supporting Documents: Copy of any communication/letter from the main contractor or customer requesting the quality check can be attached for clarity.
28 September 2025
Documents for Movement: Delhi to Maharashtra (Post-Quality Check)
Delivery Challan (again): Movement from Delhi to Maharashtra, if still not a sale, should again be accompanied by a fresh delivery challan with reference to the earlier challan/invoice—indicating it is being sent for production after quality check.
E-way Bill: Required for this inter-state movement as well, referring to the corresponding delivery challan.
Job Work Return (if applicable): If the goods are moving back after job work/quality check, GST provisions for 'job work' returns apply. Reference to the original movement documents must be maintained
Delivery Challan (again): Movement from Delhi to Maharashtra, if still not a sale, should again be accompanied by a fresh delivery challan with reference to the earlier challan/invoice—indicating it is being sent for production after quality check.
E-way Bill: Required for this inter-state movement as well, referring to the corresponding delivery challan.
Job Work Return (if applicable): If the goods are moving back after job work/quality check, GST provisions for 'job work' returns apply. Reference to the original movement documents must be maintained
28 September 2025
Delivery challan should include details like description, quantity, value, HSN, GSTIN, and reason for movement (testing, quality check, job work, etc.).
Each leg of movement (Bangalore to Delhi, Delhi to Maharashtra) must be documented separately with fresh or endorsed delivery challans and e-way bills.
If the component is altered during quality check (i.e., processing is involved), relevant job work documentation must be followed under GST rules.
Subcontractor must ensure valid GST registration in the state from which goods are dispatched (here, Karnataka/Bangalore).
Each leg of movement (Bangalore to Delhi, Delhi to Maharashtra) must be documented separately with fresh or endorsed delivery challans and e-way bills.
If the component is altered during quality check (i.e., processing is involved), relevant job work documentation must be followed under GST rules.
Subcontractor must ensure valid GST registration in the state from which goods are dispatched (here, Karnataka/Bangalore).
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