1. What is a GST Tax Invoice?

Under Rule 46 of the Central Goods and Services Tax (CGST) Rules, 2017, every registered taxable person supplying goods or services must issue a Tax Invoice. It serves as primary evidence of transaction value and is mandatory for claiming Input Tax Credit (ITC). Key mandatory fields include the supplier’s GSTIN, invoice number sequence, HSN/SAC code, rate of tax (CGST, SGST, IGST), and place of supply.

2. When to Use a Delivery Challan?

Under Rule 55 of CGST Rules, a Delivery Challan is issued when goods are transported for reasons other than direct sale or when the supply does not involve immediate tax liability. Common scenarios include:

• Transportation of goods for job work or processing.
• Goods transported on an approval or return basis.
• Transfer of goods between branch offices or warehouses (Stock Transfer).
• Transportation of goods in semi-knocked down (SKD) or completely knocked down (CKD) condition.

3. Lorry Receipt (Bilty / Consignment Note) Rules

A Lorry Receipt (LR), popular as Bilty, is a legal document issued by a Goods Transport Agency (GTA) or carrier upon accepting consignment freight. As mandated under the Carriers Act, 1865 and Motor Vehicles Act, an LR acts as:

1. Receipt of Goods: Proof that the transporter has accepted cargo for shipment.
2. Document of Title: Allows the consignee to take delivery of goods at destination.
3. Freight Contract: Specifies whether freight is “Paid”, “To Pay”, or “To Be Billed”.