How to Create GST-Compliant Delivery Challan for Goods Transport: Step-by-Step Guide
What is a Delivery Challan?
A **delivery challan** is a vital document used in goods transportation when no tax invoice is issued at the time of dispatch. It acts as proof of goods movement without implying a sale, ensuring compliance under GST regulations. Common scenarios include sending goods for job work, stock transfers between branches, returns from customers, or deliveries before invoicing.[1][2]
When to Issue a Delivery Challan Under GST
GST-registered suppliers must issue a delivery challan for non-sale movements such as job work, exhibitions, consignment sales, or testing. If the consignment value exceeds ₹50,000, an e-way bill is mandatory alongside the challan, referencing the challan number and date.[1][2][4]
Types of Delivery Challans
There are several types based on purpose: job work challans, branch transfers, customer returns, and consignment challans where ownership stays with the sender until sale confirmation. Each type requires specific details like purpose of movement.[1]
Key Fields in a Delivery Challan Format
Essential components include:
- Unique **challan number** and date for traceability.
- Consignor and consignee details: name, address, GSTIN.
- Goods description with HSN codes, quantity, unit.
- Reason for movement (e.g., 'Job Work' or 'Consignment Basis').
- Signature or digital authentication.
- Optional transport details: vehicle number, e-way bill info.[1][2][3]
| Section | Required Fields |
|---|
| Header | Challan No., Date, Sender/Receiver Details |
| Items | Description, HSN, Quantity, Value |
| Footer | Purpose, Signature, E-way Bill (if applicable) |
Step-by-Step Guide: How to Make a Delivery Challan
Step 1: Choose a template in Excel, Word, or software like Kladana, Zoho, or Gimbooks. Free templates ensure GST compliance.[1][5][6]
Step 2: Enter header details: serial number (sequential), date, consignor/consignee info with GSTIN.[2]
Step 3: List goods: HSN code, description, quantity. Note if exact quantity unknown.[2][3]
Step 4: Specify movement purpose clearly, e.g., 'Stock Transfer' or 'Sale on Approval'.
Step 5: Add transport details if needed and generate e-way bill for high-value consignments.
Step 6: Authorize with signature. Print, email, or share digitally. Retain records for 6 years per CGST Act.[2]
Delivery Challan vs. Tax Invoice vs. Rent Invoice
Unlike a tax invoice (for sales with GST), a delivery challan omits tax details. A **rent invoice**, however, records rental payments with applicable GST, distinct from goods transport docs. Convert challan to invoice post-sale confirmation.[1][2]
Benefits of Using Proper Delivery Challan Format
Accurate challans track goods, aid inventory, prevent disputes, ensure tax compliance, and link to e-way bills. They build trust and efficiency in supply chains.[2][3][4]
Free Templates and Tools
Download Excel/Word/PDF templates from Kladana, ClearTax, Gimbooks. Use generators like Stock Register for quick creation. Software automates printing with custom fields.[1][5][10]
Common Mistakes to Avoid
Avoid missing GSTIN, HSN, or purpose; ensure e-way for ₹50,000+ value. Always sign and retain copies.[1][2]
Mastering delivery challan creation simplifies goods transport, boosts compliance, and streamlines operations. Implement today for seamless logistics!