FAQ on the GST in India

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Delivery Challan

What is a delivery challan?

The transportation of goods and/or services isn’t always related to their actual sale. Delivery challans are documents issued when goods are transported from one place to another, but a regular tax invoice isn’t issued — for instance, when goods are moved from one warehouse to another. Delivery challans can be issued for either interstate or intrastate transportation, and a payment may or may not be made after delivery.

When is a delivery challan issued under GST?

A delivery challan is issued for the following cases:

  • When an unknown quantity of goods has been delivered. For example, a supply of liquid gas where the exact quantity is not known at the time of dispatch from the place of business.
  • When the goods dispatched require further refinement or work done. 
  • When goods are transported for purposes besides sale. For example, transporting goods from one storage to another.
  • A few other transactions as specified by the Central Board of Excise and Customs (CBEC).
What information needs to be mentioned in a delivery challan? 

Based on rules prescribed by the Government, the following fields must be mentioned in a delivery challan:

  • The logo, name, address, GSTIN, and CIN (Challan Identification Number) of the consignor’s organisation
  • The date of issue and delivery challan number
  • The state of issue, address of issue, state code (first 2 digits of the GSTIN), mode of transportation and vehicle number of the supplier
  • State, state code, and GSTIN of the consignee
  • Description and HSN code of the product
  • The unit of measurement (UOM) being used (such as kilograms, liters or pieces) and quantity of the product involved in the transaction
  • The rate per unit of the product, total amount, discounts if any, and total taxable value
  • Total GST amount (IGST value for intrastate transactions; CGST and SGST values for interstate transactions)
  • Calculated total
How many copies do I need to make?

Each time a delivery challans is prepared and issued, the preparer needs to make a total of three copies. The copies are labeled as follows: 

  • The original copy must be labeled ‘ORIGINAL FOR CONSIGNEE’
  • The next copy must be labeled ‘DUPLICATE FOR TRANSPORTER’
  • The final copy must be labeled ‘TRIPLICATE FOR CONSIGNOR’
How can I issue a delivery challan for multiple deliveries? 

When multiple deliveries are being made, or when goods are being transported in batches, the following steps should be taken to issue a delivery challan:

  • The consignor or supplier should issue an invoice of all the goods before dispatching.
  • A delivery challan must be issued for every batch of goods along with an authorised copy of the original invoice.
  • The original invoice must be dispatched with the final batch of goods.
Can goods be returned after delivery? 

Sometimes not all of the goods that are transported are ultimately sold. If the recipients only accept some of the goods, the leftover goods must be recorded as a partial return. Note that in order to record a partial return, some of the items in your delivery challan must be invoiced.