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Procurement of Raw material

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This query is : Resolved

rAHUL (Querist)

12 December 2020 I am in Purchase department of raw material. The Purchase order rates are on delivered basis. there is no freight in invoice. rates are on delivered basis to our factory. which documents should I make mandatory for supplier along with material. many supplier told me that, your rates are on delivery basis, there is no freight component in Invoice. so it is not mandatory documents for you. since it is transaction between supplier & transporter. is it right? should i make mandatory for supplier to submit the LR for supply which are on delivery basis. it is ok if i don't ask LR as record document for me as per GST norm

Lekhraj sood

Lekhraj sood (Expert)

13 December 2020 LR is proof of movement and receipt of goods which is required to substantiate the claim of ITC. You should insist for LR irrespective of who is responsible for transportation.

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