Delivery challan for goods to be returned to vendor by supplier

[Anurag Chopra]

Hi All,

We are in process to return the goods which we purchased from one of our vendors. Say, the quantity purchased was 100 units, now we are sending back 20 units of the same.

Just want clarification on what is the documentary requirement in the following scenarios:

Scenario I: We are raising the E-way bill for the movement:

Understand that in such cases apart from E-way bill, we would be required to raise Delivery Challan for the movement of the goods.

The above would qualify as transportation (movement) of goods for reasons “other than by way of supply” in terms of Rule 55 of CGST rules.

Scenario I: We are not raising the E-way bill for the movement:

Understand that in such cases we would be required to raise rejection note/ goods sent back note to clear the inventory from our books.

Please solicitate your view on the above.

Hi All,

We are in process to return the goods which we purchased from one of our vendors. Say, the quantity purchased was 100 units, now we are sending back 20 units of the same.

Just want clarification on what is the documentary requirement in the following scenarios:

Scenario I: We are raising the E-way bill for the movement:

Understand that in such cases apart from E-way bill, we would be required to raise Delivery Challan for the movement of the goods.

The above would qualify as transportation (movement) of goods for reasons “other than by way of supply” in terms of Rule 55 of CGST rules.

Scenario I: We are not raising the E-way bill for the movement:

Understand that in such cases we would be required to raise rejection note/ goods sent back note to clear the inventory from our books.

Please solicitate your view on the above.

AI Summary

Return of goods documentation: delivery challan required when an e-way bill is issued; otherwise rejection note suffices.
Where an e-way bill is raised for returning purchased goods, issue a Delivery Challan documenting description, quantity, reason for return, parties' details, serial/date and reference the e-way bill; where no e-way bill is required, record the return by issuing a Rejection Note/Goods Sent Back Note referencing the original purchase invoice and describing the goods and reason for return to adjust inventory.