Every trader or dealer under the recently applied GST rule must have heard of delivery challan and e-way bill. To be clear about these concepts is important if your business includes the transportation of goods.
There occur certain instances where the transportation of goods takes place without any actual sale being made. In such a situation, a delivery challan comes to play. Since the tax invoice is not made for such transit, suppliers have to make a delivery challan. It is also known by the name of delivery slip or a dispatch challan. The delivery challan format is so made that it includes information pertaining to the nature of goods being transported, the name of the supplier, GSTIN and other such important information. To learn more about the delivery challan format click the link given below
E-way bill is also a permit that is required for facilitating the transportation of goods from one state to another. As the name suggests, it is an electronic process done through a digital portal. The important thing to note here is that e-way bills are generated only when the amount of goods to be transported exceeds the stipulated amount of Rs. 50,000. In such a scenario, having a delivery challan alone will not help. The e-way bill has become effective since 1st April 2018.
Difference Between Delivery Challan and E-way Bill
It is not just that the delivery challan format differs from the e-way bill format. There are other significant differences as well. Some of the essential ones are listed below:
- E-way challan is issued by the GST portal through the online process. The transporter gets an e-way challan issued in his name as proof for the transportation of the said goods. The GST department registers the information provided by the supplier online and accordingly issues the permit. A delivery challan is not regulated by a government body as such. It is a piece of document handed to the transporter by the consignor. As there is no taxation invoice involved, this will perform the same function as an e-way bill does.
- The copies of an e-way bill, as generated by the GST department, will be provided to the consignor, transporter and consignee. In case of an e-way bill, the consignor has to issue at least copies which he will provide to the transporter and the consignee. One copy he will keep with himself as a record of the transportation.
- E-way challan format consists of information such as documents regarding the information of the goods to be transported. The form is filled by the consignor with the given template laid out in front of him. With the delivery challan format, the consignor has to make sure of all the information he has to fill in. He has to provide information such as the product to be transported, his name, address, GSTIN, etc. Both the documents also need the information related to the consignee and the transporter.
- An important distinguishing factor between the two is that of amount. In the case of e-way bill, the document has to be generated if the total amount of the product to be transported is above Rs. 50,000. For the delivery challan, on the other hand, one can easily generate it provided that the product to be put into transit remains within the prescribed limit of Rs. 50,000.
These, therefore, are some of the differences which separate a delivery challan format from that of an e-way bill. If you are a small scale supplier, the delivery challan would be ideal for you as you would not be needing a tax invoice. The delivery challan will do the job alone. But if you are exporting a large amount of goods, then the use of an e-way bill becomes mandatory.