GST guide

Delivery challan format under GST.

A delivery challan is the paper that travels with goods when there is no sale yet, or when the final bill cannot be made at dispatch. It is not a tax invoice. Here is when to use one, what it must show, and how to make one free.

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MyInvoiceDB dashboard on Windows
Step by step

When to use a delivery challan

Common cases for small businesses. Your CA can confirm your case.

01

When to use a delivery challan

Common cases for small businesses. Your CA can confirm your case.

  • ✓Sending goods for job work, for example cloth to a tailor or parts to a workshop
  • ✓Sending goods on approval, where the buyer may return them
  • ✓Moving stock to your own godown or branch under the same GSTIN
  • ✓Supplies where the exact quantity is known only on delivery, such as liquid gas
02

Details a delivery challan must show

Under the GST rules a delivery challan carries these details.

  • ✓Challan number (up to 16 characters, unique in the financial year) and date
  • ✓Name, address and GSTIN of the sender
  • ✓Name, address and GSTIN of the receiver, if registered
  • ✓HSN code and description of the goods
  • ✓Quantity (provisional where the exact quantity is not known)
  • ✓Taxable value
  • ✓Tax rate and amount, where the goods go to the receiver as a supply
  • ✓Place of supply, for movement to another state
  • ✓Signature
03

How many copies

Make it in three copies: the original for the receiver, the duplicate for the transporter and the triplicate for you.

04

E-way bill

If the value of the goods is above the e-way bill limit (₹50,000 in most cases), an e-way bill is needed along with the challan. MyInvoiceDB does not make e-way bills; make it on the e-way bill portal using the challan details.

05

Make a delivery challan free

In MyInvoiceDB, open Challans, pick the customer and items from your saved lists, and save. Print it or save it as PDF. When the goods are sold, make a tax invoice for the sale.

FAQ

Questions and answers

Is a delivery challan the same as an invoice?

No. A challan records the movement of goods; a tax invoice records a sale and its GST. When the goods are sold, issue a tax invoice.

Does a delivery challan show GST?

Only when the goods move as a supply to the receiver. For job work or moving your own stock, it records the value without charging GST.

Should challan numbers be separate from bill numbers?

Yes. Keep a separate running series for challans, unique within the financial year.

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