Delivery challan format under GST, with free template

What is a delivery challan?

A delivery challan is a document that travels with goods when they are moved without a tax invoice. It records what was sent, from whom, to whom and why. Under GST it is governed by Rule 55 of the CGST Rules, which sets out when a challan can be issued in place of an invoice and what it must contain.

When to issue a delivery challan instead of an invoice

Rule 55 allows a delivery challan when goods move without a supply being completed at that point:

• • Goods sent to a job worker for processing, and returned after job work.
• • Goods sent on approval or sale-or-return, before the buyer accepts them.
• • Goods sent in batches or in completely/semi knocked-down condition — the invoice is raised before the first consignment and each lot travels on a challan referring to it.
• • Supply of liquid gas where the exact quantity is not known at removal.
• • Movement that is not a supply at all — sending goods for repair, exhibition, testing or to your own godown in the same state.

Mandatory fields in a delivery challan (Rule 55)

A delivery challan must contain:

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

Three copies and the e-way bill

Prepare the challan in triplicate: the original for the consignee, the duplicate for the transporter and the triplicate for the consignor. If the movement needs an e-way bill — generally when the consignment value is over ₹50,000, and for inter-state movement to a job worker whatever the value — generate it before the goods move and declare the delivery challan in it instead of an invoice.

Delivery challan for job work

When you send inputs or capital goods to a job worker you issue a delivery challan, not an invoice, and no GST is charged on the movement. The goods must come back within one year for inputs or three years for capital goods; if they do not, the dispatch is treated as a supply on the day you sent them and GST becomes payable with interest. Keep the challan numbers — you report these movements in ITC-04.