Under the Goods and Services Tax (GST) regime in India, a delivery challan is a document used for transporting goods without an invoice. It is commonly used for various purposes, including sending goods for demonstration, exhibition, or for providing samples to potential customers.
In the case of supplying goods for demonstration purposes through a delivery challan, GST tax is not levied on the delivery challan itself. This is because the delivery challan is not considered a taxable document. It serves as proof of movement of goods and facilitates the transportation of goods from one place to another.
GST is applicable when there is a supply of goods or services, which usually occurs when an invoice is issued. In the case of demonstration goods, the actual supply will happen when the goods are sold or transferred to the customer, and an invoice is issued at that point. The GST tax will be levied on the invoice value of the goods sold, not on the delivery challan.
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