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Free delivery challan Template

A delivery challan is a document which is generated when goods are transferred from one place to another, not necessarily for sale. It's mostly an internal document used to record the movement and confirm the delivery of the goods.

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Delivery Challan

How the template Works

The delivery challan template makes it a lot easier to create a document just to get confirmation from the recipient that the goods have been delivered successfully. Just fill in the required information in the preset fields and take a print. Alternatively, you can download the template to your device to use offline.

Why you need a delivery challan

There are several different scenarios that require a delivery challan. Here are the three most common:

To transfer goods from one warehouse to another

Trading businesses often need to move goods from one warehouse to another for a variety of reasons, including delivery and quality checks. These movements of goods cannot be termed sales, because the goods change hands without any monetary exchange. In such cases, the business cannot create an invoice to prove the authenticity of the transaction. Instead, they can create a delivery challan to ensure that the goods have been delivered to the recipient and keep it as an internal record that the transaction is complete.

In these transactions, at least three copies of the delivery challan are prepared:

  • one copy for transporter
  • one copy for consignee
  • one copy for consigner

To confirm delivery during a sale of goods

A delivery challan is also prepared during a sale transaction. It acts as a proof that the item has been delivered to the customer. When the customer receives the item, they sign the delivery challan and keep a copy of it. However, a delivery challan shouldn't be mistaken for an invoice, because it doesn't give any right to legal ownership. Thus, for a sale transaction, it's important to separately send an invoice to the customer as well.

In these transactions, at least three copies of the delivery challan are prepared:

  • one copy for buyer
  • one copy for transporter
  • one copy for seller

To abide by the rules of GST

Under the GST regime, any supply resulting in a sale requires an invoice. However, there are some transactions where the supply of goods cannot be termed a sale under GST. The following four conditions fall into this category:

      
  • Supply of liquid gas where the quantity is unknown to the supplier.
  •   
  • Transportation of goods due to job work. This means that the goods are transported by the supplier to another vendor to complete a job. After the work is done, the goods are returned to the original supplier.
  •   
  • Transportation of goods for any purpose other than sale (this includes the first example, where the items are transferred from one warehouse to another).
  •   
  • Any other supplies designated by the relevant industry board.

What are the key components of delivery challan?

A complete delivery challan requires the following information:

Name and address

Every delivery challan should include the name and address of the consigner and the consignee.

GSTIN

If both the consigner and consignee are registered under GST, the GSTINs of both the parties must be included in the delivery challan

Date and challan number

The date of the issue and the delivery challan number should also be clearly mentioned

HSN code and item description

The Harmonized System of Nomenclature (HSN) code should be included in the items table along with the description of each item

Quantity

If the quantity of the item is known during dispatch, it must be explicitly mentioned in the delivery challan, including UOM (Unit of Measurement)

Taxable value and tax rates

The taxable value and any tax rates that are applicable for the supply should be shown in the delivery challan, as well as the total of all the applicable tax

Rate and amount

The rate of each item and the total amount (rate x quantity) should be included

Place of supply

In the case of an interstate transfer, the place of supply also has to be mentioned

Best suited for

Trading businesses

Multi-warehouse owners

Suppliers

Wholesalers

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