GST liability in case of line sale in Interstate

[Tikam Gupta]

Dear Team,

My friend is registered in Delhi state and he sells his products in Delhi and UP under the line sale concept. Actually, in Interstate sales (from Delhi to UP), he issued a single delivery challan along with an E-way bill (under-line sale) in the name of the vehicle Driver for the whole quantity. He prepares the E-way bill for the destination state (i.e UP) where he will sell the product. In such a case the actual recipient (customer) is unknown and when he will reach to UP, then, will approach to so many shopkeepers and sell the product according to their requirements. For this sale, he will issue an IGST invoice to each customer.

Please suggest, is this kind of operation model is fine in the eyes of law? or in the future, he can face any issues.

Please advice.

[Shilpi Jain]

There was a circular also in this regard. A DC is required to be generated and invoice to be generated at each sale. While the left out goods, if any, are returning back it has to be on a DC again.

[Tikam Gupta]

Dear Ms. Shilpi,

Thanks for your reply. Please share the circular number for more clarity.

Thanks.

AI Summary

Interstate Sales Under GST: Delivery Challan and Invoice Required for Each Transaction, Circular Details Needed for Clarity A user inquired about the legality of an interstate sales model under the Goods and Services Tax (GST) framework, where a seller from Delhi transports goods to Uttar Pradesh using a single delivery challan and E-way bill, selling directly to multiple shopkeepers upon arrival. The seller issues an Integrated GST (IGST) invoice to each customer. A respondent advised that a delivery challan and invoice should be generated for each sale, and any unsold goods returning must also be documented with a delivery challan. The inquirer requested further details on the relevant circular for clarity.