E-way bill for returnable material

Nimesh joshi (Office Executive ) (86 Points)

12 July 2022

We have sent some material on returnable basis to a customer and have prepared an e-way bill stating "others-returnable"

While getting back the material the e-way bill and delivery challan has to be prepared by us or it can be prepared by our customer.

How the this transaction will get closed as far as e-way bill is concerned.

What if there is no e-way bill prepared for material received back with was sent on returnable basis

When dealing with materials sent on a returnable basis and the associated e-way bills, there are specific procedures to follow to ensure compliance with GST regulations and proper closure of the transaction. Here’s a breakdown of the process:

E-Way Bill for Returnable Materials

Initial Dispatch:
- When you send the material to your customer, you prepare an e-way bill stating "others-returnable" and provide a delivery challan along with it. This indicates that the material is on a returnable basis.
Receiving the Material Back:
- When the material is returned by the customer, the e-way bill and delivery challan need to be prepared for the return journey as well. This is because the material being sent back is essentially a new movement of goods and requires documentation for compliance.
Preparation of E-Way Bill for Return:
- Responsibility: Generally, the responsibility for preparing the e-way bill for the return of material falls on the party sending the material back. In this case, you (the supplier) would typically be responsible for preparing the e-way bill for the return journey.
- Details: You should prepare a new e-way bill with the relevant details of the return, including the reason for return and any other necessary information.
Delivery Challan for Return:
- Along with the e-way bill, you should prepare a delivery challan for the return of the material. This delivery challan should detail the items being returned and reference the original dispatch.
No E-Way Bill for Return:
- Compliance Issues: If no e-way bill is prepared for the material being received back, it could lead to compliance issues. The authorities might view the movement of goods without an e-way bill as non-compliant with GST regulations, which could lead to penalties or other issues.
- Audit and Verification: In the event of an audit or verification, you would need to show that the return of the goods was properly documented and compliant with the regulations. Lack of an e-way bill could create difficulties in justifying the transaction.

Closing the Transaction

To properly close the transaction:

Ensure that you have prepared the e-way bill and delivery challan for the return of the material.
Keep proper records of all documentation for future reference and potential audits.
Make sure that the return is accurately reflected in your records and accounting system to reconcile the transaction properly.

In summary, you should prepare the e-way bill and delivery challan for the return of the material yourself to ensure compliance with GST regulations. If you fail to prepare these documents, it could lead to issues with regulatory compliance and potential penalties.

In a B2C (Business to Consumer) scenario, the process for preparing a delivery challan can be slightly different from B2B (Business to Business) transactions, especially when dealing with returnable goods. Here’s how you should handle the delivery challan and its format in this context:

Who Prepares the Delivery Challan

For Sending the Material:
- Responsibility: As the supplier, you prepare the delivery challan when dispatching the goods to the customer, even if it’s on a returnable basis.
For Receiving the Material Back:
- Responsibility: Similarly, when the goods are returned by the customer, you (the supplier) should prepare a new delivery challan for the return of these goods. This ensures proper documentation and compliance.

Format of the Delivery Challan

A delivery challan is a document that accompanies goods and provides details about the shipment. It serves as proof of delivery and includes information on the contents, quantities, and purpose of the delivery. Here’s a typical format for a delivery challan:

Delivery Challan Format

Header:
- Company Name
- Company Address
- Contact Details
- Delivery Challan Number
- Date of Issue
Customer Details:
- Name of the Customer
- Address of the Customer
- Contact Details of the Customer
Details of Goods:
- Descripttttion of Goods
- Quantity
- Unit of Measurement
- Value (optional, especially if dealing with GST)
Reference Details:
- Invoice Number (if applicable)
- Order Number (if applicable)
- Reason for Delivery (e.g., Returnable Goods, Replacement, etc.)
Shipping Details:
- Mode of Transport
- Vehicle Number (if applicable)
- Expected Delivery Date
Terms and Conditions:
- Any terms regarding the return of goods, payment, or other conditions.
Signature:
- Signature of the Authorizing Person
- Designation
- Company Seal (if applicable)
Additional Information:
- If the goods are being returned, mention the reason for the return and any other relevant details.