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Invoice accompanying purchased goods

10 December 2024

The materials purchased domestically and imported machineries, being customs cleared by our HQ- are being despacthed to our Factory under road challan -without accompanying a copy of Tax Invoice. Is it not violative of any act/rules? Kindly give your considered opinion citing section references.

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5684 Points)
Replied 10 December 2024

Compliance Requirements As per the GST regulations, the following compliance requirements apply:

1. _Tax Invoice_: A tax invoice is required to be issued by the supplier (HQ) for the goods being transported to the factory.

2. _Transportation Documents_: For goods transported under a road challan, the following documents are required: -

Invoice or bill of supply (Rule 55 of CGST Rules, 2017) - Bill of supply (Rule 49 of CGST Rules, 2017) - Delivery challan (Rule 55 of CGST Rules, 2017) Violation of GST Regulations Transporting goods without a tax invoice is a violation of GST regulations:

1. _Section 31 of CGST Act, 2017_: Requires a tax invoice to be issued by the supplier for goods transported.

2. _Rule 46 of CGST Rules, 2017_: Specifies the details required in a tax invoice.

3. _Rule 55 of CGST Rules, 2017_: Requires a delivery challan or invoice to accompany the goods during transportation. Recommendations

1. _Issue a tax invoice_: Ensure that a tax invoice is issued by the HQ for the goods being transported to the factory.

2. _Accompany goods with documents_: Ensure that the goods are accompanied by the required documents, including the tax invoice, during transportation.

3. _Comply with GST regulations_: Ensure compliance with GST regulations to avoid penalties and fines.

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Money Money (421 Points)
Replied 10 December 2024

Transporting goods without a tax invoice can indeed be a violation of GST rules in India. Here are the key points and relevant sections:

Section 31 of the CGST Act, 2017: This section mandates that a tax invoice must be issued for the supply of goods or services. For goods, the invoice should be issued before or at the time of removal of goods for supply to the recipient.

Rule 55 of the CGST Rules, 2017: This rule allows for the issuance of a delivery challan instead of a tax invoice in certain cases, such as:

Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known.

Transportation of goods for job work.

Transportation of goods for reasons other than by way of supply.

Such other supplies as may be notified by the Board.

E-Way Bill Requirements: As per Rule 138 of the CGST Rules, 2017, an e-way bill is required for the movement of goods if the value exceeds ₹50,000. The e-way bill must be accompanied by the invoice or delivery challan.

In your case, if the goods are being transported under a delivery challan, it should comply with Rule 55. However, if the movement is for supply purposes, a tax invoice is mandatory. Failure to comply with these requirements can lead to penalties under Section 122 of the CGST Act, 2017.