What is a Delivery Challan?

A Delivery Challan is an official document issued during the transportation of goods without raising a tax invoice. It is generally used when goods are being moved for job work, samples, testing, returnable purposes, or stock transfer between branches.

Under the GST Act, issuing a delivery challan is mandatory in specific cases to legally support the movement of goods without tax liability. It contains key details such as quantity, type of goods, consignee, consignor, and vehicle information.

It ensures smooth movement of goods while staying GST compliant and helps businesses maintain proper logistics records.

✅ Benefits of Delivery Challan

🎯 Provide 7 strong benefit points, written from the client’s perspective.

1️⃣ I can transport goods without raising an invoice
2️⃣ I stay compliant with GST rules for non-sale movements
3️⃣ I avoid penalties during transit checks and inspections
4️⃣ I clearly record quantity, delivery location, and transport details
5️⃣ I create proof of delivery for returnable or sample goods
6️⃣ I simplify my logistics and inventory tracking process
7️⃣ I get a professional, customizable format ready for print or digital use

📑 Documents Required for Delivery Challan

📂 List all required documents with relevant emojis and brief explanations.

1️⃣ 🧾 Business GST Number – Required for GST-compliant challan generation
2️⃣ 📋 Consignee Details – Name, address, and GSTIN of the receiver
3️⃣ 📦 Goods Description – Name, type, and nature of goods being transported
4️⃣ 🧮 Quantity & Unit Info – Accurate count of goods being moved
5️⃣ 🚚 Transport Details – Vehicle number, mode of transport, delivery date
6️⃣ 🔖 Purpose of Movement – Job work, testing, branch transfer, etc.

👤 Who Needs a Delivery Challan?

🧾 Delivery Challans are required by:

• Manufacturers sending goods for job work or processing

• Wholesalers dispatching goods as samples or trial shipments

• Distributors transferring stock between warehouses or branches

• Retailers returning damaged or excess goods to suppliers

• E-commerce sellers moving goods to fulfillment centers

• Logistics and courier companies transporting client goods

🔄 Process of Creating a Delivery Challan

🔁 Provide a step-by-step explanation of how the service is executed from start to finish.

1️⃣ Collect Goods and Movement Details – Product description, quantity, purpose, and delivery address
2️⃣ Prepare Draft Challan – Create a draft with GST-compliant format and transport info
3️⃣ Client Review – Review and confirm all entries (party name, goods, vehicle details)
4️⃣ Finalization – Finalize the challan in PDF or print format with signature field
5️⃣ Stamp and Signature – Add company stamp and authorized signature
6️⃣ Dispatch – Attach with goods or send via email to the recipient

⏱️ Timeline for Delivery Challan

⏳ A Delivery Challan can be drafted and delivered within 24 to 48 hours of receiving complete details.
Urgent and same-day services are available for businesses with immediate dispatch needs.

❓ Frequently Asked Questions (FAQs) about Delivery Challan

1️⃣ What is the purpose of a delivery challan?
It allows movement of goods without raising a tax invoice, typically for job work, sample delivery, or stock transfer.

2️⃣ Is it mandatory under GST?
Yes, in specific cases like job work, exhibitions, or goods sent on approval, a delivery challan is mandatory under GST.

3️⃣ What details must be included in a delivery challan?
It must include date, challan number, name and address of consignor and consignee, GSTIN, HSN code, quantity, and transport details.

4️⃣ Is GST charged in a delivery challan?
No, GST is not charged since it's not an invoice for sale. However, HSN codes and tax categories must be mentioned.

5️⃣ Can a delivery challan be issued without GST registration?
Generally no, unless you are a non-GST registered entity moving non-taxable goods.

6️⃣ How many copies of the challan are needed?
Three – one for the consignor, one for the consignee, and one for the transporter.

7️⃣ Can I send goods only with a delivery challan?
Yes, but only for specified non-sale movements as per GST rules. For sale, a tax invoice is required.

8️⃣ Can I generate a digital delivery challan?
Yes, we provide both printable and digitally signed formats for compliance and ease.

9️⃣ Can a delivery challan be modified after issue?
It can be revised before goods are dispatched. After dispatch, a correction note must be issued.

🔟 Is it valid proof in case of GST audit or inspection?
Yes, if properly formatted and accompanied by transport and business details, it's accepted as valid proof.