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Delivery Challan Under GST: When to Use, Format & Rules

A delivery challan is a document that accompanies goods when they are moved without a tax invoice. It proves that the goods are in transit for a valid reason and records who sent what to whom.

When can you use a delivery challan under GST?

You may issue a delivery challan instead of an invoice when you transport goods for reasons such as:

  • Supply on approval (the customer will decide whether to buy)
  • Job work, where goods are sent to another person to process
  • Supply of liquid gas where the quantity is not known at the time of removal
  • Other reasons where the movement is not a sale, such as a transfer for repair or display
  • Supplying goods in parts or when the invoice cannot be issued at the time of removal, for example in certain continuous supplies

When the sale is final, issue a proper tax invoice.

What must it contain?

  • Date and number (a consecutive serial number of up to 16 characters)
  • Name, address and GSTIN of the consignor (sender)
  • Name, address and GSTIN (if registered) of the consignee (receiver)
  • HSN code, description and quantity of goods
  • Taxable value, tax rate and tax amount where the movement is for supply on approval
  • Place of supply if the movement is between states
  • Signature

How many copies?

When the goods are not supplied as a sale, the challan is generally prepared in triplicate: the original for the consignee, the duplicate for the transporter and the triplicate for the consignor.

E-way bill

An e-way bill is generally required when the value of a consignment is above โ‚น50,000. A challan does not replace this requirement when it applies. Check the current rules for your case.

Common mistakes

  • Using a challan for a final sale and never issuing the invoice.
  • Forgetting to invoice approved goods once the buyer accepts.
  • Duplicate or missing numbers. See numbering rules.

Create a delivery challan

Our free delivery challan generator produces a clean PDF or Excel challan with serial numbers, HSN and quantities.

This is general information, not tax advice. Please confirm details with your CA.