Delivery Challan Format & Free Maker

What is a delivery challan under GST?

A delivery challan is the document that travels with goods when they are moved without a sale, or when a tax invoice cannot be issued at the time of removal. Rule 55 of the CGST Rules allows it for job work, supply of liquid gas where the quantity is not known at removal, transport for reasons other than supply, and other notified cases. hisabkitab’s free delivery challan maker follows the Rule 55 format.

When do you need a delivery challan?

Common situations where businesses issue a challan instead of an invoice:

• Sending raw material or semi-finished goods to a job worker

• Goods sent on approval or on sale-or-return basis

• Stock transfer to a branch, where no supply takes place

• Goods sent for an exhibition, repair or testing

• Goods moved in semi-knocked down condition in several lots

What details must a delivery challan contain?

Under Rule 55, a delivery challan should show:

• Date and a consecutive serial number of up to 16 characters, unique for the financial year

• Name, address and GSTIN of the consignor

• Name, address and GSTIN or UIN of the consignee, if registered

• HSN code and description of the goods

• Quantity, which can be provisional if the exact quantity is not known

• Taxable value, and the GST rate and amount where the goods are moving for supply

• Place of supply for inter-state movement

• Signature of the consignor or an authorised person

How many copies should you print?

Prepare the challan in triplicate: the original for the consignee, the duplicate for the transporter and the triplicate for the consignor. If an e-way bill is required for the movement, it must be generated as well, with the challan number as the document reference.

Delivery challan vs tax invoice

A tax invoice records a supply and creates GST liability. A delivery challan only covers the movement of goods. When goods sent on approval are accepted, or when a job worker returns goods and you sell them, you issue a tax invoice at that point. In hisabkitab, a challan can be converted into an invoice in one click, so the items, quantities and party carry over.