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Key takeaways
- A delivery challan is used under GST when goods are sent without a sale, such as for job work, on approval or for supply of liquid gas where the quantity is not known at dispatch.
- Rule 55 of the CGST Rules lists the content: a serial number, date, names and addresses, GSTIN, description, quantity and signature.
- Goods moving with only a challan may also need an e-way bill. Value and distance decide it.
- It is not a tax invoice. The buyer cannot claim input tax credit on a challan.
Free PDF and Excel: Delivery challan template and job work tracker. Get it below
What a delivery challan is
A delivery challan is a document that accompanies goods in transit when the movement is not a sale, or when the invoice cannot be raised at the time of dispatch.
Indian GST law allows it in specific situations. Job work is the commonest in procurement. You send fabric to a stitching unit, a casting to a machine shop or a component to a coating line, and the goods come back. No sale happens, so no tax invoice is issued. A challan covers the journey.
A pump maker sends 200 impeller castings to a machining unit in another town for finishing. It issues challan DC-0412 listing 200 pieces, the HSN code, the job work reason and the value, and ships with an e-way bill because the value is above the threshold.
The machining unit returns the finished pieces under its own challan. Only when the pump maker sells the finished pumps does it raise a tax invoice.
When to use one
- Job work, in both directions.
- Goods sent on approval for sale or return, with the invoice raised on acceptance.
- Supply of liquid gas where the quantity is not known at the time of removal.
- Line sales, where goods are carried on a vehicle and sold in the course of the journey.
- Movement for reasons other than supply, such as for repair or exhibition.
Free PDF and Excel
Delivery challan template and job work tracker
A delivery challan layout and a tracker that shows which job work goods are still out.
- Challan layout
- Field guide
- Pre-dispatch checklist
- Excel job work tracker with days out
What goes on it
| Field | What goes in it | Why it matters |
|---|---|---|
| Challan number and date | A serial number unique to the financial year, up to 16 characters, and the date. | Same discipline as invoices. |
| Consignor and consignee | Names, addresses and GSTIN, if registered. | Identify who sends and who receives. |
| Description and HSN code | What is moving, with the code. | Needed for the e-way bill. |
| Quantity | Number or weight. | The goods should match the load. |
| Taxable value | Value of the goods, with tax rate and amount where tax is chargeable. | Value drives e-way bill need. |
| Place of supply | For inter-state movement. | Same as invoice. |
| Reason | Job work, approval, repair or other. | Explains why no invoice exists. |
| Signature | Signature of the consignor or authorised person. | Shows approval. |
The rules ask for three copies in the usual case: original for the consignee, duplicate for the transporter and triplicate for the consignor. Check rule 55 in current form with your adviser. For a sale, issue a GST tax invoice. For goods covered by an e-way bill see the e-way bill page.
Last checked: 19 October 2026. Situations and fields reflect rule 55 of the CGST Rules as summarised by published GST guides. Confirm the current text and any state rules with a chartered accountant.
Typical errors
- Using a challan for a movement that is really a sale.
- Forgetting to close the loop when job work goods are returned.
- Missing the e-way bill when the value crosses the limit.
- No reason stated.
- Challan numbers that restart or repeat.
- Reason for movement is stated.
- HSN and quantity match the load.
- Value is shown.
- E-way bill checked or generated.
- Three copies prepared.
- Return challan is expected and tracked.
Frequently asked questions
Is a delivery challan the same as an invoice?
No. A challan covers a movement of goods where no sale takes place, or where the invoice is raised later. It does not let the recipient claim input tax credit.
Do I need an e-way bill with a delivery challan?
If the consignment value is above the threshold and the goods are not exempt, yes. See the e-way bill page for the rules.
How many copies of a delivery challan are needed?
The usual set is three: original for the consignee, duplicate for the transporter and triplicate for the consignor.
Can I use a delivery challan for a sale?
Only in specific cases such as liquid gas supply, where the invoice follows after the quantity is known.
How is a delivery challan different from a delivery note?
A delivery note records handover and is often signed. A delivery challan is a GST document that justifies a movement without invoice.