GST Delivery Challan format 2017 / RGP CHALLAN / THE NEW DELIVERY CHALLAN 2017

Topic : What is the GST document ? on which Goods should be sent for job work ?

Question 1: Is there any Change / Any new Format of RGP ( Challan )

Yes, when the GST law and rules were set up in 2017,  the Government had given the new format of the delivery challan along with the condition that it will be used for every movement of material to any job worker.

▶Finsys View : Rule 45 clearly says that goods challan will be treated as an Invoice. The Government wants to have all the required information. So that if the time period elapses. You shall have to give the GST on that. And the values and tentative GST is already mentioned by you in your Challan.

Click Here for Downloading the New PDF Format

Source of Law :

According to the Central Goods and Services Tax (CGST) Rules,2017 Notified vide Notification No. 3 /2017-Central Tax (Dated 19th June 2017) and further as amended byNotification No. 7/2017-Central Tax (Dated 27th June 2017), Notification No. 10/2017-Central Tax (Dated 28th June 2017) and Notification No. 15/2017-Central Tax (Dated 1st July 2017)

1) Under Rule 45,  the inputs or capital goods shall be sent to the job worker under the cover of a challan issued by the principal, including where the inputs or capital goods are sent directly to jobworker

2) The challan should contain the details as specified in Rule 55 of the TAX INVOICE, CREDIT AND DEBIT NOTES Rules.

Source 1 :  Government of India : GST Dept

http://www.cbec.gov.in

 “Rule 45. Conditions and restrictions in respect of inputs and capital goods sent to the job worker.-

(1) The inputs, semi-finished goods or capital goods shall be sent to the job worker under the cover of a challan issued by the principal, including where such goods are sent directly to a job-worker.

(2) The challan issued by the principal to the job worker shall contain the details specified in rule 55.

(3) The details of challans in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another during a quarter shall be included in FORM GST ITC-04 furnished for that period on or before the twenty-fifth day of the month succeeding the said quarter.

(4) Where the inputs or capital goods are not returned to the principal within the time stipulated in section 143, it shall be deemed that such inputs or capital goods had been supplied by the principal to the job worker on the day when the said inputs or capital goods were sent out and the said supply shall be declared in FORM GSTR-1 and the principal shall be liable to pay the tax along with applicable interest…..”

” Rule 55. Transportation of goods without issue of invoice

The consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, containing the following details, namely:-

(i) date and number of the delivery challan;

(ii) name, address and Goods and Services Tax Identification Number of the consigner, if registered;

(iii) name, address and Goods and Services Tax Identification Number or Unique Identity Number of the consignee, if registered;

(iv) Harmonised System of Nomenclature code and description of goods;

(v) quantity (provisional, where the exact quantity being supplied is not known);

(vi) taxable value;

(vii) tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee;

(viii) place of supply, in case of inter-State movement; and

(ix) signature.

(2) The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner, namely:–

(a) the original copy being marked as ORIGINAL FOR CONSIGNEE;

(b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and

(c) the triplicate copy being marked as TRIPLICATE FOR CONSIGNER….”

Source 2 :  GST India News website

https://gstindianews.info/issue-for-job-work-challan-under-gst/

Source 3 : Hubco.in

https://www.hubco.in/articles/how-and-when-to-issue-delivery-challan-under-gst-transportation-of-goods-without-issue-of-tax-invoice#:~:text=Delivery%20challan%20is%20a%20document,not%20applicable%20to%20that%20transaction.

Source 4 : CAclubIndia.com, for Rule 45 Text

https://www.caclub.in/rule-45-of-cgst-rules-2017-restrictions-on-inputs-capital-goods-sent-for-job-work/#:~:text=(4)%20Where%20the%20inputs%20or,the%20said%20supply%20shall%20be

Source 5 : Taxguru.in, for Rule 56 Text

https://taxguru.in/goods-and-service-tax/transportation-goods-issue-invoice-gst.html

Rule 55 of CGST Rules 2017: Transportation of Goods without issue of Invoice

Provisions under Rule 55 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to  ‘Transportation of Goods without issue of Invoice’, are as under:

(1) For the purposes of-

(a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,

(b) transportation of goods for job work,

(c) transportation of goods for reasons other than by way of supply, or

(d) such other supplies as may be notified by the Board,

the consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, containing the following details, namely:-

(i) date and number of the delivery challan;

(ii) name, address and G.S.T Number of the consigner, if registered;

(iii) name, address and G.S.T Number or Unique Identity Number of the consignee, if registered;

(iv) Harmonised System of Nomenclature (H.S.N) code and description of goods;

(v) quantity (provisional, where the exact quantity being supplied is not known);

(vi) taxable value;

(vii) tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee;

(viii) place of supply, in case of inter-State movement

(ix) signature.

(2) The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner, namely:–

(a) the original copy being marked as ORIGINAL FOR CONSIGNEE;

(b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and

(c) the triplicate copy being marked as TRIPLICATE FOR CONSIGNER.

(3) Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared as specified in rule 138.

(4) Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.

(5) Where the goods are being transported in a semi knocked down or completely knocked down condition or in batches or lots –

(a) the supplier shall issue the complete invoice before dispatch of the first consignment;

(b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;

(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and

(d) the original copy of the invoice shall be sent along with the last consignment.

Comment

the consigner may issue a delivery challan to job worker, serially numbered, in lieu of invoice at the time of removal of goods for transportation. Rule 55 provide minimum contents for such challan. Where the goods are sent from one job worker to another job worker, the goods may move under the cover of a challan issued either by the principal or the job worker. In the alternative, the challan issued by the principal may be endorsed by the job worker sending the goods to another job worker, indicating therein the quantity and description of goods being sent.

As per the provisions contained in rule 138, an e-way bill is required to be generated by every registered person who causes movement of goods. The third proviso to rule 138(1) of the CGST rules provides that the e-way bill shall be generated either by the principal or by the registered job worker irrespective of the value of the consignment, where such movement is inter-State.

Source 6 : GST Zen. com

Transportation of goods without issue of invoice | CGST Rule 55

Finsys and MLG Team at your Service

“For CorruCase, CorruBeds was its pandemic pivot” – The Noel D’Cunha Sunday Column at Printweek.

When hospitals were filling up at an unprecedented pace, the corrugation specialist responded to the growing need for medical beds by producing corrugated beds, Ayush Khetan, Director at Khetan Corru Case, tells Noel D’Cunha

Finsys is Proud to Partner with Khetan Corrucase, Hyderabad, Telangana.

Nation’s one of the most popular Print and Packaging Industry Magazine – Printweek carried their Interview on 16-5-2021

Good News !

And we are glad that in one of the questions, Mr Ayush Khetan, Director, Khetan Corrucase Pvt Ltd, mentioned about how Finsys ERP is helping them in Automation and Barcoding

Thus increasing the efficiency in working in the Corrubeds division too

Quote …..

NMD: What level of automation do you deploy at your plants?
AK: In terms of equipment automation, we always look forward to it. We are a team of young motivated individuals trying to disrupt with innovation in our conventional industry of corrugated packaging. This may be through the use of ERP (Finsys) for our day-to-day entries through a handheld device (such as a tablet/mobile), incorporation of barcodes for tagging and tracking,

all these facilities are of Finsys ERP, and we are proud of our association with Khetan Group

Unquote ………”

for Detailed interview, do visit the link below

https://www.printweek.in/features/for-corrucase,-corrubeds-was-its-pandemic-pivot—the-noel-dcunha-sunday-column-54602

Finsys in the Service of Indian Corrugation Industry and Worldwide

Issue using QR Code + Scanned using Scanner .. Web Finsys Cloud Finsys

This is the all new, Cloud based Finsys, Web based Finsys, which is a Responsive web technology, the screen layout changes with the size of screen…. mobile / tab / laptop / mac / desktop

So, Issue using QR Code + Scanned using Scanner .. Web Finsys Cloud Finsys Traceability Barcode QR Barcode

First, how to print barcode second how to issue using barcode / QR code scanning you can use Android phone you can use laser scanner / infra red gun shaped scanner 8 steps of ERP implementation for this you may see another youtube video by Finsys ERP team in the service of the industry worldwide

Streamlining Production: Why Manufacturers are Shifting from Job Work to the Purchase-Sales Model

Indeed, managing job work in a complex manufacturing environment often leads to reconciliation nightmares. Whether you are sending paper for printing, plastic granules for moulding, or steel for fabrication, the traditional “Job Work” route involves heavy compliance under ITC-04 and GST laws.

In this guide, based on insights from Sangeet Gupta, we explore a more efficient alternative: converting Job Work into a Purchase and Sales model to simplify accounting, TDS, and GST workflows.

1. The Challenges of Traditional Job Work

Initially, job work seems cost-effective. However, it comes with significant administrative burdens:

• ITC-04 Filings: Mandatory quarterly reporting of goods sent to and received from job workers.

• Material Reconciliation: Tracking “Input vs. Output” ratios and burning/wastage percentages across external vendors.

• Valuation Risks: Potential disputes with tax authorities regarding the value of the job work service versus the material value.

2. The Purchase-Sales Solution: A Simpler Path – Job Work vs Purchase Sales Model GST TDS

Admittedly, shifting to a “Sales” model where you sell raw materials to your vendor and “Purchase” back the finished components can seem like it increases turnover. Fortunately, it simplifies the digital audit trail significantly.

How it Works:

1. Sales Entry: You sell the raw material (e.g., 15 tons of granules) to the vendor at a market-linked price. Notably, this establishes clear ownership and value.

2. Purchase Entry: You buy back the finished component. The “Job Work Charges” are essentially built into the price difference.

3. No ITC-04: Since it is a standard buy-sell transaction, the requirement for ITC-04 reconciliation is eliminated.

3. Navigating the New TDS Landscape (Section 194Q) – Job Work vs Purchase Sales Model GST TDS

Furthermore, the Finance Act introduced Section 194Q, effective from July 1, 2021. Specifically, buyers with a turnover exceeding ₹10 Crores must deduct 0.1% TDS on purchases of goods exceeding ₹50 Lakhs.

By adopting the Purchase-Sales model:

• Your accounting for TDS under 194Q becomes straightforward, as it follows standard purchase patterns.

• It eliminates the ambiguity of whether a transaction is a “Contract for Service” (194C) or “Purchase of Goods” (194Q).

4. Why Use Finsys ERP for This Transition?

Ultimately, your choice of model should be supported by a robust ERP. Finsys ERP is already helping over 800 factories globally—from India to Saudi Arabia and Angola—manage these complex transitions.

Key ERP Features for Reconciliation:

• Automated TDS 194Q Calculation: Ensuring compliance at the time of booking the purchase voucher.

• Dynamic Turnover Reports: Helping you monitor your ₹10 Crore threshold for TDS applicability.

• Integrated GST Module: Managing the transition of input tax credit (ITC) seamlessly between sales and purchase cycles.

Conclusion: Make Your Business Better and Faster

To conclude, the goal of any system should be to reduce problems and increase speed. By evaluating if your production job work can be converted to a Purchase-Sales model, you can reduce reconciliation time and focus on core manufacturing. Indeed, as GST laws become more synchronized, simplicity in your SOPs will be your greatest competitive advantage.

Watch the Full Technical Session: Production Job Work Suggestions

3. Outro & Call to Action

Ready to Simplify Your Vendor Accounting?

• Official Website: Finsys Infotech Pvt Ltd

• Expert SOPs: Watch More Consulting Videos on YouTube

• Get a Consultation: Contact Finsys to Optimize Your Workflows