One invoice can be issued for different challan in gst?

This query is : Resolved

SHREEPAL LALWANI (Querist)
Follow

19 August 2017 Dear Sir,

can I send goods to purchaser on challan basis. and at the end of the month can i issue one gst invoice for different challan?

if in above example I can not send goods on challan then what is the use of challan in GST?

I send goods to purchaser which may returned by purchaser? then in this situation what should I do?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

19 August 2017 You can't send material to purchaser under challan.
Challan is used for sending the material for job work.
In case of return of material he has to raise tax invoice and send the material back.

SHREEPAL LALWANI

SHREEPAL LALWANI (Querist)
Follow

21 August 2017 Sir, If I want to send goods on approval basis, then what should I do in this case? Can I send Goods without gst invoice? Because in our business goods are always sent on approval basis?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

09 August 2024 In the context of GST (Goods and Services Tax) in India, the handling of invoices, challans, and approvals is governed by specific rules. Here’s a detailed explanation to address your queries:

### Issuing Invoices for Different Challans

1. **Issuing One Invoice for Different Challans:**
- **Yes, you can issue a single GST invoice for goods covered under multiple challans**, provided that all the goods are supplied within the same invoice period. The invoice should capture the details of all the challans related to the delivery.
- The invoice must include a reference to the relevant challans or delivery challans under which the goods were dispatched. This ensures that the invoice is accurate and reflects all the goods supplied.

2. **Purpose of Challans:**
- **Challans are primarily used to document the movement of goods before the invoice is issued.** They are used when goods are sent for purposes such as delivery, approval, or even job work. Challans serve as proof of dispatch and are necessary for the proper documentation of the goods’ movement.

### Goods Sent on Challan Basis

1. **Sending Goods on Challan Basis:**
- **You can send goods on a challan basis, and then issue an invoice at a later stage**. This is often done for:
- Goods sent for job work.
- Goods sent on approval or consignment basis.
- When you send goods on challan, you need to issue a GST invoice when the actual supply is made or when the goods are returned or sold.

2. **Use of Challans in GST:**
- **Challans are used to document the physical movement of goods**. They are important for:
- Goods sent for job work or for approval.
- Goods sent to branches or warehouses.
- Tracking and managing goods before the final invoice is raised.

### Goods Returned by Purchaser

1. **Handling Returned Goods:**
- **If goods are returned by the purchaser**, you must issue a credit note or a debit note to adjust the original invoice. The credit note should include details of the original invoice and challan, and the GST should be adjusted accordingly.
- The return of goods should be documented with proper GST compliance to ensure that the credit is reflected in the GST returns.

### Goods Sent on Approval Basis

1. **Sending Goods on Approval Basis:**
- **Goods sent on approval basis do not require an immediate GST invoice**. Instead, you can send the goods with a challan.
- **If the goods are approved and accepted by the buyer**, you will then issue a GST invoice for the goods. The date of the invoice should align with the date when the goods are approved and sold.
- **If the goods are returned**, you should issue a credit note to adjust the GST liability and ensure proper accounting of the return.

### Summary of Key Points:

- **Single Invoice for Multiple Challans:** Permissible, provided all goods are covered within the same invoice period.
- **Challan Usage:** Documentation of the movement of goods before final invoicing.
- **Goods Returned:** Issue a credit note and adjust GST accordingly.
- **Goods on Approval:** Send goods on a challan; issue GST invoice upon approval.

For precise compliance and to avoid any issues, always refer to the latest GST laws, rules, and circulars or consult with a GST professional.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now