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GST India

What is a delivery challan and when do you need one?

5 min readUpdated By Trinevia Billing

Quick answer

A delivery challan is a document that goes with goods when they move without a tax invoice, for example for job work, on approval, or to another branch. Under GST Rule 55 it needs a number, date, both parties' details, HSN, quantity and value, and is made in three copies.

When to issue a delivery challan

  • Sending goods to a job worker for processing, and getting them back.
  • Goods sent on approval or "sale or return", where the buyer has not agreed to buy yet.
  • Moving stock between your own branches or warehouses in the same state.
  • Goods sent in many lots against one invoice, such as a machine shipped in parts.
  • Supplies where the exact quantity is not known when they leave, such as liquid gas.

What to include (Rule 55)

  1. Date and a challan number of up to 16 characters, unique for the financial year.
  2. Name, address and GSTIN of the sender (consigner).
  3. Name, address and GSTIN of the receiver (consignee), if registered.
  4. HSN code and description of the goods.
  5. Quantity, with unit.
  6. Taxable value.
  7. Tax rate and amount, when the goods go to a buyer as a supply.
  8. Place of supply, for movement to another state.
  9. Signature.

Three copies

CopyWho keeps it
OriginalThe consignee (receiver)
DuplicateThe transporter
TriplicateThe consigner (you)

Delivery challan and e-way bill

If the value of goods moving by road is more than ₹50,000 (the limit can differ by state for movement within a state), you usually also need an e-way bill. Write the e-way bill number and the vehicle number on the challan.

Questions

Is a delivery challan the same as an invoice?

No. A challan only records that goods moved. It does not ask for payment. If the goods are later sold, you issue a tax invoice for the sale.

Do I show prices on a delivery challan?

Rule 55 asks for the taxable value. For job work and branch transfers many businesses show the value but no tax. Trinevia Billing lets you show or hide price columns.

Can I convert a challan into an invoice later?

Yes. Copy the challan, change the document type to Tax Invoice, and add the tax. It gets a number from your invoice series.

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