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Consignment note under GST

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What is a consignment note?

Consignment note has not been defined anywhere in GST law. Meaning of consignment note can be understood from Explanation to Rule 4B of Service Tax Rules, 1994.

As per said rule, a consignment note means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, a person liable for paying service tax whether consignor, consignee or the goods transport agency.

Provisions related to Goods Transport Agency (GTA)

As per Notification No. 11/2017-Central Tax (Rate) dated 28th June 2021, any service provider will be considered as Goods Transport Agency only when he engaged in the transportation of goods by road and issues consignment note.

If a consignment note is issued, it means that the lien on the goods has been transferred to the transporter. Now the transporter is responsible for the goods till it’s safe delivery to the consignee.

If the consignment note is not issued by the transporter, he will not come within the ambit of the goods transport agency. Further, the services provided by individual transporters who do not issue a consignment note covered under the exemption Notification No.12/2017-Central Tax (Rate).

Particulars of GST consignment note

A consignment note has the following fields-

  • Name of consignor
  • Name of consignee
  • Gross weight of the consignment
  • Registration number of the carriage in which the goods are transported
  • Details of the goods transported
  • Place of origin
  • Place of destination
  • GSTIN of the person liable for paying tax whether as consignor, consignee, or GTA.
  • Other information as prescribed for a tax invoice under rule 46

Format of the consignment note

 

Consignment Note Format

 

Recent updates

 

24th February 2022

CBIC notified the reduction in the applicability of the GST e-invoicing threshold from Rs 50 crore to Rs 20 crore with effect from 1st April 2022.

20th September 2021

CBIC has clarified that there is no need to carry the physical copy of the tax invoice in cases where an e-invoice has been generated by the supplier. Production of the Quick Response (QR) code having an embedded Invoice Reference Number (IRN) electronically, for verification by the proper officer, would suffice. (Circular No. 160/16/2021 - GST)


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CA Anand Singh

CA Anand Singh

I am a practising Chartered Accountant with 6 years of experience in Direct and Indirect Taxation, FEMA, Corporate Law and Audit etc.