Delivery challan format

A delivery challan records the movement of goods that are not being sold at that moment, or whose quantity is not known when they leave. It names the consignor and consignee, lists the goods, gives their value and says why they are moving.

It replaces the tax invoice only for the trip. If the movement later turns into a sale (for example goods sent on approval and kept by the customer), you issue the tax invoice then.

When to use it

• Sending material to a job worker and getting it back (section 143).
• Goods sent on approval or sale-or-return, for exhibitions, or for repair.
• Liquid gas, where the exact quantity is known only at delivery.
• Moving goods between your own godowns or branches in the same state, where it is not a supply.
• Goods sent in lots (SKD/CKD): the invoice is issued before the first lot, and each lot travels on a challan quoting it.

Rule 55 of the CGST Rules allows a delivery challan instead of an invoice in these cases and lists its particulars. It is made in triplicate: “original for consignee”, “duplicate for transporter” and “triplicate for consigner”.

If an e-Way Bill is needed (Rule 138), it is generated on the challan. For job work, an e-Way Bill is needed for inter-state movement whatever the value. Job-work inputs must come back within one year (three years for capital goods), or the dispatch is treated as a supply on the day it left (section 143).