Movement of inward items under road challan (without a copy of tax invoice)

Hello Mr. Jayanta Bandyopadhyay,

I have reviewed your query regarding the movement of inward items under a road challan without a tax invoice. Allow me to provide clarity on this matter.

The movement of goods within India is regulated under the Central Goods and Services Tax (CGST) Act 2017, and the accompanying rules. As per Section 31 of the CGST Act, 2017, a tax invoice is mandatory for any supply of goods or services. Additionally, Rule 138 of the CGST Rules, 2017 requires the generation of an e-way bill for transporting goods exceeding ₹50,000 in value, whether inter-state or intra-state. The lack of these documents during transportation might result in a violation and attract penalties under Section 122 of the CGST Act.

In your case, moving domestically bought or imported goods cleared through customs under a road challan without a tax invoice may raise concerns. According to Rule 55 of the CGST Rules, 2017, a delivery challan can be used instead of a tax invoice only under specific circumstances, such as goods sent for job work or non-taxable supply. If the movement of goods does not fall under these exceptions and lacks the required tax invoice or e-way bill (wherever applicable), it may result in detention or seizure of goods under Section 129 of the Act.

The case of K.P. Sugandh Ltd. v. State of Karnataka (2020) is good for your reference. This case sets an important example. Goods were seized and fines were imposed because the proper paperwork was not provided during transportation. This shows how crucial it is to follow documentation rules to prevent legal and financial issues.

To ensure smooth operations, I recommend verifying the documentation process and making sure that tax invoices or e-way bills are generated and accompany the goods as needed. Consulting a GST professional can help ensure complete compliance and address any procedural lapses.

Please feel free to reach out for further clarification or assistance.