Delivery challan under GST

Where the delivery challan fits

Normally goods travel with a tax invoice. When there is no supply yet, or the invoice cannot be made at the time of removal, the law allows a delivery challan in its place. The cases are covered in detail in when is a delivery challan required. In short: goods sent for job work, goods moved for reasons other than supply, liquid gas where the quantity is not known at removal, and other notified cases.

A challan is not a bill. It creates no sale and no output tax by itself. But it is a GST document, so it follows numbering and content rules.

Fields a delivery challan must show

The number follows the same rule as invoices: consecutive, up to 16 characters, letters, digits, hyphen and slash only, and unique in the financial year. Use a separate series such as DC/ so it never collides with invoices. See invoice numbering rules.

Three copies, each with a job

• Original for consignee: travels with the goods and stays with the receiver.
• Duplicate for transporter: shown if the vehicle is checked.
• Triplicate for consigner: stays with you as proof of dispatch.

Mark the copy name on each. When the goods come back, as with job work, keep the return challan of the job worker stapled to your triplicate. That pair is your evidence that the stock left and returned.

Electronic copies are fine for your own records, but the copy travelling with the vehicle should be easy to show on demand: a printout or a clear PDF on the driver's phone with the e-way bill number written on it.

Delivery challan and the e-way bill

A challan does not replace an e-way bill. If the movement needs one under the e-way bill rules, the challan is the document declared in Part A, with document type set to delivery challan. Movements for job work across states generally need an e-way bill regardless of value; check current limits on the e-way bill portal. Read e-way bill basics for thresholds and who generates it.

This is general information, not tax advice.

Special case: one invoice, many trucks

When a machine or large order goes in completely or semi knocked-down form across several vehicles, the supplier issues the full tax invoice before the first consignment, then a delivery challan for each later consignment referring to that invoice. Each vehicle carries its challan and a certified copy of the invoice; the original invoice goes with the last consignment.

Common challan mistakes

• Leaving the value blank. Even with no tax, the taxable value must be shown.
• Using the challan as a sale. If the goods are sold, a tax invoice is needed within the time allowed.
• No return tracking. Job-work goods not returned within the allowed period are treated as supplied by you. See GST on job work.

Doing this with Tally and Cashflow OS

Cashflow OS makes delivery challans as documents with your logo, letterhead and signature, using your Tally items and parties, and shares them as a PDF on WhatsApp or email. Where you track stock movement in Tally, a delivery note voucher can also be created from the phone through the connector. Cashflow OS can generate e-way bills for synced Tally vouchers on plans that include them; otherwise use the e-way bill portal or your existing process.