Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Line sales and GST

1283 views

Save Share

Avinash Jeevan Dsouza

Accounts Officer & In charge

3308 Points Posted on 27 May 2022

One of my friends is running a business, he is a manufacturer and retailer. He sells goods through line sales using a commercial vehicle. Line sale is nothing but taking goods in a vehicle and taking them to an unknown buyer of the goods. The moment they leave the factory, they will not know who will purchase what quantity of the goods. So preparing sales invoices and sending goods is not possible. What documents do they need to have in their vehicle to avoid any penalty from the commercial tax dept?

Replies (3)

Quick Summary

This discussion addresses the documentation requirements for businesses engaged in line sales using commercial vehicles. Since the buyer is unknown when goods leave the factory, specific documents are necessary to avoid penalties from the commercial tax department. A delivery challan and an e-way bill are mandatory for goods involved in line sales. The e-way bill has a limit of Rs. 50,000 for such transactions.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 27 May 2022

You have to made delivery challan for goods taken for line sales, also need to generate e-way bill in respect of such sale. Option of line sales available in E way Bill also.