Statutory documents and reporting requirements

When the goods or services are supplied, received, or invoiced, some localization procedure must be completed, and this procedure is based on the nature of the transaction. To record the transactions, some documents/challans must be maintained.

These are the statutory and the reporting documents required for India Localization:
  • Delivery Challan
  • E-Way Bill
  • Subcontracting Challan
  • E-invoice
  • GST Register

Delivery Challan

Delivery challan is a document that is created for the transportation of goods from one place to another that may or may not result in sales for which tax invoice is not required during movement. To move the goods, either delivery challan or tax invoice is mandatory. You can create a delivery challan for a shipment (line).

Goods that are linked to the same shipment line can be shipped in multiple vehicles. In this scenario where the quantity cannot be split into multiple shipment lines, a delivery challan must be created for each vehicle. You can also create a delivery challan after the confirmation of shipment.

E-Way Bill

The E-Way Bill document must be generated required if the value of the goods that are transported exceeds INR 50000. This document can be generated using Tax Invoice or Delivery Challan as a reference.

Subcontracting Challan

The subcontracting challan is used to maintain the inputs or capital goods sent to the subcontractor. The goods can be sent to the job worker from the manufacturer warehouse or directly from the supplier warehouse.

All the goods sent for job work must be associated with a challan issued by the manufacturer. The challan must be issued for the inputs or capital goods that are sent directly to the job worker. The details of the challan must be included in the GSTR1 document.

If the goods sent to the subcontractor are not returned within a stipulated time, those goods are considered as supply and the taxes are levied on the subcontractor from the effective date. When sending the goods to the subcontractor, this data must be maintained by the manufacturer:
  • Goods dispatched to a subcontractor
  • Goods received from a subcontractor
  • Transfer of goods between the subcontractors

E-Invoice

The E-Invoice or Electronic Invoicing document is a system where the supplier of goods or services uploads the invoice details and register the supply transaction on the government tax portal, Invoice Registration Portal (IRP). After uploading the invoice details, the supplier receives the Invoice Reference Number (IRN) which is unique for a specific tax invoice.

All the suppliers must generate the tax invoice along with the Invoice Reference Number (IRN). The tax invoice without IRN is considered invalid. The E-Invoice is required in these scenarios:
  • Domestic supply of goods and services (B2B)
  • Export supply of goods and services
  • Supplies to SEZ
  • Transfer of goods between different GST registration numbers

GST Register

The GST Register holds the details of all the taxable sales and purchase transactions. These records can be used to report the transactions to GST authorities. The data in the GST Register is used for internal reporting and analysis purposes.