Guide
How to make a delivery challan under GST
A delivery challan is the document that goes with goods moved without a sale, such as goods sent for job work, on approval, or between your own branches. Under Rule 55 of the CGST Rules it carries a serial number, date, consignor and consignee details, HSN codes, quantities and value, and is made in three copies.
Updated
Challan or invoice?
| Situation | Document |
|---|---|
| Goods sold to a customer | Tax invoice |
| Goods sent for job work | Delivery challan |
| Goods sent on approval, or for exhibition or testing | Delivery challan |
| Liquid gas where the quantity is not known at dispatch | Delivery challan |
| Goods moved for reasons other than a sale | Delivery challan |
| A machine sent in parts across several lots | Delivery challan with each lot, invoice before the first |
What a delivery challan must show
- Date and a consecutive serial number of up to 16 characters
- Name, address and GSTIN of the consignor (you)
- Name, address and GSTIN of the consignee, if registered
- HSN code and description of the goods
- Quantity (provisional where the exact quantity is not yet known)
- Taxable value
- Tax rate and amount, where the goods are moving as a supply to the consignee
- Place of supply, for inter-state movement
- Signature
Three copies
Make it in triplicate: the original for the consignee, the duplicate for the transporter and the triplicate for you. If an e-way bill is needed for the movement, the challan details go into it.
Questions
Common questions
Is GST charged on a delivery challan?
No tax is charged when goods move without a sale. Where the goods later become a supply, the tax invoice is issued then.
Do I need an e-way bill with a challan?
Often, yes: the e-way bill rules apply to the movement of goods above the value limit, whether or not it is a sale.
Can I make a delivery challan online free?
Yes. JenVoice's delivery challan maker has the Rule 55 fields and needs no sign-up.