Overview
What is a Delivery Challan?
A delivery challan is issued under Rule 55 of the CGST Rules whenever goods are moved without an immediate sale taking place. Common cases are sending goods for job work, transferring stock between branches under the same GSTIN, sending goods on approval / sale-or-return, or moving goods for exhibition.
Because there is no supply, no GST is charged on a delivery challan — but the document is still a legal proof of movement and must be carried with the consignment. It must be issued in triplicate: Original for Consignee, Duplicate for Transporter, Triplicate for Consigner.
For inter-state movement above ₹50,000 (or intra-state above the state's threshold), an e-Way Bill is also required referencing the challan. For job work, the movement is additionally reported in form ITC-04 every quarter.
Use Cases
When to issue a Delivery Challan
- Sending goods for job work to a job worker.
- Inter-branch stock transfer under the same GSTIN.
- Goods sent on approval / sale-or-return basis.
- Movement for exhibition, demo, or trial.
- Supply where quantity cannot be ascertained at dispatch (e.g. liquid in tankers).
Fields
Mandatory fields on a Delivery Challan
Challan number & date
Unique sequential, max 16 chars. Separate series (DC-) recommended.
Consigner & consignee details
Name, address, GSTIN if registered.
HSN code & description
Goods description, HSN, quantity, unit.
Taxable value (informational)
Approximate value shown but no GST is charged.
Place of supply
For inter-state, state code is required for e-Way Bill linkage.
Transporter details
Name, GR/LR number, vehicle number for the e-Way Bill.
Purpose of movement
Job work, branch transfer, approval, etc.
How it works
Generate in 3 simple steps
Fill in details
Add consigner, consignee, purpose of movement, items and transporter info.
Preview live
Three copies are laid out per the CGST Rule 55 format automatically.
Download PDF
Print and hand a copy to the transporter. Generate the e-Way Bill referencing the challan number.
FAQ
Frequently asked questions
Everything you need to know about delivery challan generation.
Is GST charged on a delivery challan?+
No. A delivery challan is for movement of goods, not a sale, so no GST is charged. The challan shows an approximate value for transport / customs purposes only.
When do I need an e-Way Bill in addition to a challan?+
For inter-state movement of goods worth more than ₹50,000, an e-Way Bill is required regardless of whether the document is a tax invoice or a delivery challan. Intra-state thresholds vary by state.
Can I use a delivery challan instead of a tax invoice?+
Only in the specific cases allowed by Rule 55 (job work, branch transfer, goods on approval, supply with unascertainable quantity). For a normal sale, you must issue a tax invoice.
How many copies of a delivery challan are required?+
Three — Original for Consignee, Duplicate for Transporter, Triplicate for Consigner. Our PDF generates all three on separate pages.
What happens to the challan after the goods come back from job work?+
When the processed goods return, you reference the same challan number. The movement is reported quarterly in form ITC-04. If goods don't return within 1 year (3 years for capital goods), it is deemed a supply and you must issue a tax invoice.
Can a delivery challan be converted to a tax invoice?+
Yes — once the buyer confirms purchase (e.g. for goods sent on approval), you issue a tax invoice referencing the challan. Our builder supports one-click convert.
What freelancers say
Switched from Zoho last month — haven't looked back. The CGST/SGST split is automatic, and the one-click GSTR-1 export saves my CA hours at the end of every month.
Priya Mehta
Freelance UX Designer · Bengaluru
Had a cross-state client situation I was calculating wrong for months. ZapInvoice just switches to IGST automatically — no more manual guessing, no more wrong invoices.
Rahul Kapoor
Independent IT Consultant · Delhi
I bill 15+ clients a month and used to chase every single one. Now ZapInvoice auto-reminds them on day 3, 7 and 14 — most pay before I even notice. Pro pays for itself.
Anita S.
Owner, Kreative Digital Studio · Pune
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