Goods Receipt Note: Meaning, Format and Use

What is a goods receipt note?

A goods receipt note, or GRN, is a document prepared when goods arrive at your shop, warehouse, office, or godown. It is also commonly called a goods received note. It records what arrived, how much was received, the condition of the goods, and the quantity accepted or rejected. A GRN answers one basic question: What did my business actually receive?

A purchase order records what you ordered. The supplier invoice records what the supplier billed. The GRN records what physically arrived and passed your check.

A purchase receipt is not always the same as a GRN. It may only confirm that a purchase or payment took place. A GRN specifically records the receipt and condition of physical goods.

When should you create a GRN?

How do you use a GRN?

Check the delivery

Find the purchase order, supplier invoice, or delivery document connected with the goods. Count, weigh, or measure the items. Also check the product name, size, model, packaging, batch, serial number, or expiry date where relevant. Do not copy the quantity shown on the invoice without checking the physical delivery.

Record the actual quantities

A GRN may show five different quantities:

• Ordered: What you asked the supplier to send
• Received: What physically arrived
• Accepted: What passed your check
• Rejected: What was damaged, incorrect, or unusable
• Pending inspection: What still needs to be tested or approved

Only the accepted quantity should normally be added to available stock. Rejected goods should be kept separately until the supplier collects, replaces, or otherwise resolves them.

Compare the GRN with the order and invoice

Before approving payment, compare the purchase order, the GRN, and the supplier invoice. This is commonly called a three-way match.

For example, if the order and invoice show 100 units but the GRN shows that only 95 arrived, the difference should be resolved before the payment is approved.

What should a GRN format include?

GST law does not prescribe one standard GRN format for routine purchases. Businesses can create a format that suits their inventory and receiving process.

However, registered businesses must maintain the applicable records of inward supplies, stock, invoices, delivery challans, and related transactions under Rule 56 of the CGST Rules. A practical GRN format can include:

Simple GRN example

Suppose Anjali owns a stationery shop. She orders 100 reams of A4 paper and 50 boxes of pens. When the delivery arrives, all 100 paper reams are present, but two are damaged. Only 45 pen boxes have been delivered. Her GRN would show:

GRN number: GRN/2026/0042
Date: 27 July 2026
Supplier: Sharma Traders
Purchase order: PO/2026/0110

What should you do when a delivery does not match?

A GRN helps you record a delivery problem before updating stock or approving the supplier’s bill.

GRN vs purchase order, invoice, and delivery challan

Does a GRN matter under GST?

A GRN is not a tax invoice and cannot be used by itself to claim Input Tax Credit, or ITC. Section 16 of the CGST Act requires the buyer to possess a valid tax invoice, debit note, or another prescribed document. The buyer must also receive the goods or services and meet the other applicable ITC conditions.

A GRN can support the record of receipt because it shows when the goods arrived, what quantity was accepted, who checked the delivery, and which order or invoice it was connected to.

A GRN can support the record of receipt, but it does not replace a valid tax invoice or independently establish eligibility for ITC.

Should you use paper, a spreadsheet, or software?

Conclusion

A goods receipt note gives you a clear record of what entered your business. It helps you check deliveries, update stock with the correct quantity, and resolve differences before approving supplier payments.

You do not need a complicated process when your business is small. Use a clear GRN format, record the quantity that actually arrived, and compare it with the purchase order and supplier invoice.