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sankar ponnan (Querist)
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31 July 2021 SIR / MAM

A trader is in Tamil Nadu. He has to issue a delivery challan to his Unregistered Customer in Karnataka but he is registered in Tamil Nadu.
Kindly let me know how can he issue that invoice plz
thanks in adv

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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11 July 2024 If a trader registered under GST in Tamil Nadu needs to issue a delivery challan to an unregistered customer in Karnataka, here’s how it can be done:

### Steps to Issue Delivery Challan to Unregistered Customer in Karnataka:

1. **Prepare the Delivery Challan:**
- The trader should prepare a delivery challan in triplicate. This document should contain details such as:
- Name, address, and GSTIN (if registered) of the trader in Tamil Nadu.
- Name and address of the unregistered customer in Karnataka.
- Description, quantity, and value of goods being transported.
- Place of dispatch (Tamil Nadu) and place of delivery (Karnataka).

2. **No Tax Invoice Required:**
- Since the customer is unregistered, the trader does not need to issue a tax invoice. Instead, a delivery challan suffices for the movement of goods.

3. **Mention Place of Supply:**
- On the delivery challan, clearly mention that the place of supply is Karnataka. This is important for determining the tax applicability under GST.

4. **Transportation of Goods:**
- Ensure that the goods are transported with copies of the delivery challan accompanying the shipment. The original copy should be retained by the trader, and copies should be provided to the transporter.

5. **Compliance with E-way Bill Requirements:**
- For inter-state movement of goods where the consignment value exceeds Rs. 50,000, an e-way bill is mandatory. Generate the e-way bill using the GSTN of the trader in Tamil Nadu. The e-way bill should also reflect the details of the delivery challan.

6. **Record Keeping:**
- Maintain a copy of the delivery challan along with other transportation documents like the e-way bill for future reference and audit purposes.

### Important Points to Note:

- **GST Compliance:** Since the customer is unregistered, there is no requirement to charge GST on the delivery challan. However, GST would apply based on the transaction type if the customer was registered.

- **E-way Bill:** Ensure that the e-way bill is generated and accompanies the goods during transit. This is mandatory for the movement of goods across states.

- **Place of Supply:** Mentioning the correct place of supply (Karnataka) is crucial for determining the correct tax implications under GST.

By following these steps, the trader can issue a delivery challan to an unregistered customer in Karnataka while complying with GST regulations effectively. This approach ensures smooth transportation of goods and adherence to tax laws.

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