Delivery challan format

When a challan replaces an invoice

Under Rule 55, a delivery challan may be issued instead of a tax invoice in cases such as:

• Supply of liquid gas where the quantity at the time of removal is not known.
• Goods sent for job work, and their return.
• Goods moved for reasons other than a supply, such as sent on approval, for repair, to an exhibition or as returnable packing.
• Other supplies the rules notify.

A challan is also used where goods are sent in parts (in completely or semi knocked down condition) under one invoice. Read when is a delivery challan required for examples.

Sample delivery challan format

The sample uses made-up details. Switch between the Classic, Modern and Compact layouts, Print / PDF it on A4, or print a Blank template to fill by hand. Open in editor loads it into the free delivery challan generator, where you type straight onto the page and GST, totals and the amount in words are worked out for you.

What the format must contain

• Challan number (up to 16 characters) and date
• Consignor name, address and GSTIN
• Consignee name, address and GSTIN (if registered)
• Purpose: job work, approval, exhibition, etc.
• HSN code and description
• Quantity and unit
• Taxable value
• Tax rate and amount where supply is to the consignee
• Place of supply for inter-state movement
• Vehicle number and transporter
• Copy marking: original, duplicate, triplicate
• Signature of consignor
• Receiver's signature and date

What Rule 55 asks the challan to show

• Date and number of the challan, a consecutive serial number of up to 16 characters, unique for the financial year.
• Name, address and GSTIN of the consignor (sender).
• Name, address and GSTIN (if registered) of the consignee.
• HSN code and description of goods.
• Quantity, provisional where the exact figure is not known.
• Taxable value.
• Tax rate and amount (CGST, SGST/UTGST, IGST, cess) where the transport is for supply to the consignee.
• Place of supply, for inter-state movement.
• Signature.

The challan is made in three copies: original for consignee, duplicate for transporter and triplicate for consignor. Check the current rule text on cbic-gst.gov.in.

Example: goods sent for job work

A Rajkot engineering unit sends 1,000 castings worth ₹3,20,000 to a machining job worker in Morbi. No sale happens, so there is no tax invoice. The unit issues a delivery challan showing the castings, HSN, quantity, value ₹3,20,000 and the job work purpose. The job worker returns the machined parts with its own challan and bills only its job charges on a tax invoice.

Goods sent for job work generally have to come back within the time the law allows (longer for capital goods such as moulds and dies); otherwise they are treated as supplied on the day they were sent. Track the challans that are still open. See GST on job work.

E-way bill with a challan

A challan does not replace an e-way bill. If the goods' value and the type of movement need an e-way bill, generate it with the challan as the document. The value limits and exemptions are notified and differ by situation, so check e-way bill basics before dispatch.

The everyday delivery note

Many businesses also call the paper that goes with a normal sale a "challan" or delivery note: the godown sends goods with a challan, the buyer signs it, and the tax invoice is raised from it later the same day. That signed copy is good proof of delivery. Keep in mind that for a taxable sale, the tax invoice must still be issued on time; the challan does not postpone it.

In TallyPrime this is a Delivery Note voucher; the Sales voucher later picks up the delivery note so stock is not reduced twice. A Material Out voucher is used for job work.