One of my client who is registered service provide has a Steel work business. He purchase the material and brings to his shop, and he do some semi furnished goods with that. And later these goods he will carry in his own vehicle to the place from whom he get the order and make all the fittings and whatever he has to do.
My Question is :-
1. While transporting goods in his own vehicle, does he required to take Delivery Challan or he need to generate an e way bill (If e way bill then which part he needs to be filled Part A or Part B).
2. If suppose he need to generate the e way bill then he should be created a Bill for the goods. But he will be creating a bill after the completion of the work.
And the distance of travel is around 200 to 250 km.
Please suggest me how can he transport goods from work place to ultimate work site in his own vehicle.
26 July 2024
In India, the transportation of goods, whether by a registered service provider or any other entity, is governed by various regulations under the Goods and Services Tax (GST) and transport laws. Here’s how your client should handle the transportation of goods, including whether to use a Delivery Challan or an E-way Bill, and the process involved:
### **1. Delivery Challan vs. E-way Bill**
**a. Delivery Challan**
- **Purpose**: A Delivery Challan is used to acknowledge the receipt of goods and to transport goods when the invoice is not yet issued. It is primarily used when goods are being transported before an invoice is raised or when the invoice is issued later.
- **Applicability**: In your client's case, since the goods are being transported to a site for further processing or fitting, and the invoice will be created after the completion of the work, a Delivery Challan is appropriate.
**b. E-way Bill**
- **Purpose**: An E-way Bill is required for the movement of goods if the value of the goods exceeds ₹50,000. It is used for the transportation of goods and ensures that the movement is compliant with GST regulations.
- **Applicability**: If the goods being transported exceed ₹50,000 in value, an E-way Bill would generally be required. However, if the transportation is done within the state and is for further processing, specific rules might apply.
### **2. Generating and Filling the E-way Bill**
**a. E-way Bill Details**
- **Part A**: This part includes details about the goods being transported, such as the GSTIN of the supplier and recipient, the place of dispatch, the place of delivery, and the transport details.
- **Part B**: This part includes the vehicle number used for transportation.
**b. When to Generate E-way Bill**
- **When Required**: If the value of the goods being transported exceeds ₹50,000 and an E-way Bill is required, you should generate it.
- **Part A**: Fill in details such as the GSTINs, addresses, and other relevant information about the consignor and consignee, the place of dispatch, place of delivery, and the nature of the goods.
- **Part B**: Enter the vehicle number of the own vehicle used for transportation.
### **3. Process for Transportation**
**a. Using Delivery Challan**
1. **Create Delivery Challan**: Issue a Delivery Challan from your client's shop for the semi-finished goods being transported. - The Delivery Challan should include details such as the description of goods, quantity, and the purpose of transportation (i.e., for further processing).
2. **Transport the Goods**: Transport the goods with the Delivery Challan as the document to prove the movement and purpose of transportation.
**b. When E-way Bill is Required**
1. **Generate E-way Bill**: If required, generate the E-way Bill on the GST portal: - **Part A**: Fill in the required details including the nature of goods and transport details. - **Part B**: Update with the vehicle number.
2. **Transport with Documentation**: Carry the E-way Bill along with the Delivery Challan during transportation.
**c. Post-Completion**
1. **Invoice Creation**: After the completion of the work at the site, issue the invoice for the goods and services rendered.
2. **Update Records**: Ensure that the records of transportation and the invoice are updated in your client's accounting and GST filings.
### **Summary**
- **Delivery Challan**: Use a Delivery Challan if the invoice will be issued later. It is suitable for transporting goods to a work site or for further processing.
- **E-way Bill**: If the value of goods exceeds ₹50,000 and an E-way Bill is required, generate it. Fill Part A with details about the shipment and Part B with the vehicle number.
- **Documentation**: Ensure that both the Delivery Challan and the E-way Bill (if applicable) are carried during transportation to comply with GST regulations.
This approach helps ensure that the transportation of goods is compliant with GST requirements and that proper documentation is maintained.
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