Delivery Challan- Meaning, Contents & Formats
In this article, we have discussed the Delivery challan, its contents, method of issuing it and provided GST Delivery Challan format PDF, Word, and Excel format for download.
What is a delivery challan under GST?
A delivery challan is a document created for the transportation of goods from one place to another which may or may not result in sales.
For example, a delivery challan is prepared in lieu of an invoice at the time of transportation of goods.
- Transportation of goods for job work: When goods are sent by Principal to Job Worker for the purpose of job work or return of goods from job worker to principal
- Goods transported where the quantity at the time of removal is not known, for example, Supply of Liquid gas where the quantity at the time of removal from the place of business of the supplier is unknown.
- Sending goods outside India for the purpose of the exhibition does not constitute a Supply or Export. Since it is not a supply or export, an Invoice, Bond, or LUT is not required. Such goods are transferred on Delivery Challan.
- Tax Invoice could not be prepared at the time of removal, Where the goods are supplied to the recipient that constitutes a supply (Sales) but the GST invoice has not been prepared at the time of removal of goods, then the supplier shall issue a tax invoice after delivery of goods.
- Goods being supplied on an approval basis, Where goods are sent within the state or outside the state on approval for sale and are removed before the supply takes place.
- Transportation of goods for reasons other than by way of supply that is a branch transfer.
Invoicing Rules – Movement of goods in knocked down condition
- The supplier shall issue a complete invoice before dispatch of the first consignment.
- Supplier shall issue a delivery challan for each subsequent consignment giving reference to the invoice.
- Each consignment will be accompanied by copies of the corresponding delivery challan along with the duly certified copy of the invoice.
- The original copy shall be sent along with the last consignment.
What are the contents of a delivery challan?
A delivery Challan should be serially numbered. The number should not exceed sixteen characters just like an invoice in GST and shall contain the following details.
- Date and Number of Delivery Challan
- Name, Address, and GSTIN of Consigner if registered
- Name, Address, and GSTIN of consignee if registered
- HSN code and Description of Goods
- Quantity of goods supplied
- Taxable value
- Tax rate
- Tax Amount (IGST, CGST, SGST & UTGST)
- Place of Supply in case of Interstate supply
- Signature of Authorised Person
Type of copies of Delivery Challan
Normally, three copies of the delivery challan are prepared for the supply of goods. The record of Delivery Challans must be kept by the accounts department.
- Original Copy which is marked as original for the consignee.
- Duplicate Copy which is marked as a duplicate for the transporter.
- Triplicate Copy which is marked as triplicate for the consignor.
Latest Judgement on Delivery challan and E-way bill
Recently in Nov20, the Kerala Court held that E-way Bill and Delivery Challan are necessary for interstate delivery of exempted goods under GST.
However, the court also observes that nonregistration of the consignor, or alleged misclassification of the goods under transportation, cannot be a ground for detention under Section 129 of the GST Act.
Download GST Delivery Challan Format PDF, Word and Excel File
We have provided the sample GST delivery challan format PDF, Word, and Excel files. The following files should be downloaded and edited.
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Frequently Asked Questions
A delivery challan is used for the transportation of goods from one place to another which may or may not result in outward supplies like job work. For Goods sent for Job work, the tax invoice is not issued since it is not considered as sales. So a delivery challan is used.
Yes, Multiple goods can be sent via one challan provided the details of items should be separately mentioned and not combined into one item.
Akash Arora is a Chartered Accountant by profession and the founder of this website. His expertise areas include compliance with Goods and Service tax and Direct taxes in India. He has written more than 70+ blogs on GST and Direct tax.
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