What is a Delivery Challan?
A Delivery Challan (also called a Dispatch Note or Goods Challan) is a document issued when goods are transported from one location to another without a sale taking place. Under GST rules in India, a delivery challan is required when goods move for reasons other than a supply — such as stock transfers between branches, sending goods for job work, or dispatching samples to potential clients.
Under Rule 55 of the CGST Rules, 2017, a delivery challan must be issued in triplicate — the original for the consignee, a duplicate for the transporter, and a triplicate retained by the consignor. The challan must be serially numbered and contain specific mandatory fields.
GST Compliant
Our challan format includes all mandatory fields required under Rule 55 of CGST Rules — GSTIN, HSN codes, quantity, and value of goods.
Multi-Purpose
Works for stock transfers, job work, exhibition goods, sample dispatch, and inter-branch movements.
When Do You Need a Delivery Challan?
Under GST, a delivery challan is required in the following situations:
- Stock Transfers: Moving goods between your own warehouses, branches, or depots without an actual sale.
- Job Work: Sending raw materials or semi-finished goods to a job worker for processing under Section 143 of the CGST Act.
- Sample Dispatch: Sending product samples to potential buyers or distributors for evaluation.
- Exhibition Goods: Transporting goods for display at trade shows, exhibitions, or events.
- Liquid/Gas Supply: Continuous supply of gas or liquid where the exact quantity is not known at the time of dispatch.
- Semi-Knocked Down (SKD) Shipments: When goods are sent in multiple lots before a single invoice is raised.
Mandatory Fields in a Delivery Challan
- Challan Date & Serial Number: Unique, sequential numbering per financial year.
- Consignor Details: Name, address, and GSTIN of the sender.
- Consignee Details: Name, address, and GSTIN (if registered) of the receiver.
- HSN Code: The Harmonized System code for each item being transported.
- Description & Quantity: Complete details of goods including weight, dimensions, or count.
- Taxable Value: Even though no sale occurs, the value of goods must be declared for compliance.
- Reason for Transportation: Job work, stock transfer, sample, exhibition, etc.
- Transporter Details: Vehicle number, transporter name, and transport document number.
Frequently Asked Questions
Is a delivery challan the same as an invoice?
No. An invoice is issued when a sale (supply of goods or services) takes place. A delivery challan is used when goods are moved without a sale — stock transfers, job work, samples, etc. Under GST, both serve different legal purposes.
Do I need an E-Way Bill along with a delivery challan?
Yes, if the value of goods exceeds ₹50,000, an E-Way Bill is required in addition to the delivery challan, as per Rule 138 of the CGST Rules. The challan details must match the E-Way Bill.
How do I create a delivery challan using BillBanao?
Go to billbanao.org/invoice and select the "Professional" or "Classic" template. Under "Your Details", enter the consignor's name in "Name / Company" and their GSTIN + address in "Address / Info". Under "Client Details", enter the consignee's details in "Client Name" and "Billing Address". Use the Invoice Number field for the challan serial number (e.g., "DC-001"). Add each item being dispatched as a line item with description, quantity, and declared value. Add "Reason: Stock Transfer" or "Reason: Job Work" in the notes. Click "Export PDF" to download.