A goods receipt note (GRN), also called a material receipt note or inward note, is the document generated by the buyer's stores or ERP when goods are received against a purchase order, recording the date, PO and invoice references, quantities received and accepted, any shortages or rejections, and the inspector's sign-off. In corporate purchasing, invoice processing and payment are triggered by the GRN ("payment X days from GRN"). Under the MSMED Act the GRN date is strong evidence of the "day of acceptance" from which the 15 or 45 days run.
How GRNs work in India
The supplier's truck arrives with the invoice, challan and e-way bill. Stores check the goods against the PO, record the receipt in the ERP (SAP, Oracle, Tally and the like) and generate a GRN with a number. Quality inspection may follow, and accepted quantities are confirmed. Accounts payable then "three-way matches" PO, GRN and invoice and schedules payment. Suppliers often receive the GRN number by email or on the vendor portal, and it must be quoted when following up. If the buyer does not share GRNs, the signed delivery challan and e-way bill serve the same purpose.
Why it matters for getting paid
A buyer that has raised a GRN has, in its own system, accepted the goods. Disputes raised months later about quality or quantity contradict its own record. The GRN date also fixes the payment due date under the PO and the MSMED Act, so the interest computation is precise. Read delivery challan, purchase order and Section 15 of the MSMED Act.
How FundRaksha uses it
FundRaksha's advocates ask clients for GRN numbers, vendor-portal screenshots and emails confirming receipt, and cite them in the notice as the buyer's own acceptance. Where GRNs are not available, the challan and e-way bill chain is used. The company has worked on ₹50 Cr+ of invoices for 1,000+ businesses; the fee is 30% of recovery.
Worked example (hypothetical)
A Chennai packaging unit (small enterprise) supplies cartons worth ₹4,80,000 to an FMCG company whose PO says "payment 60 days from GRN". The GRN is dated 5 July and shows full quantity accepted. Under Section 15 the term is capped at 45 days from acceptance, so the due date is 19 August, not 3 September. Payment is received on 3 November. Interest under Section 16, assuming a 6.5% bank rate (19.5% a year, monthly rests), for the 2.5 months from 19 August to 3 November is about ₹19,700, which the supplier claims separately after receiving the principal.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.