Expert Assisted Tax Filing Plans By ClearTax

Delivery Challan – Procedure for Issuing & Format

Updated on

Delivery Challan is an important supporting document used by businesses across globe to record the movement of goods.

What is a Delivery Challan?

A delivery challan is a document created during the transportation of goods from one place to another which may or may not result in sales. This is sent along with the shipped goods. It contains the details of the items shipped, quantity of those goods, buyer and delivery address.

Generally, three copies of delivery challan are created:

  • Original: For the buyer
  • Duplicate: For the transporter
  • Triplicate: For the seller

Delivery Challan – Sample format

When is a Delivery Challan issued?

There are various situations where a delivery challan may be issued:

  • Goods being supplied on approval
  • Goods being transported for job work
  • Goods being transported for reason other than supply. Example: Transportation of goods from one warehouse to another warehouse of the supplier.
  • Goods supply: Where the quantity of goods supplied is not known. Example: Supply of liquid gas, where quantity of supply from the place of supplier is not known at the time of supply.
  • Transportation of goods in a semi-assembled state

Contents of a delivery challan

A delivery challan typically contains the following details:

  • Date of Challan and Date of transportation
  • Serial Number of the challan – This is compulsory. It helps identify and easily refer to a challan.
    Name, address, and GSTIN of sender and receiver. In case the receiver is not registered, his place of business must be mentioned.
  • Details of Goods such as HSN Code, Description, Quantity, Taxable Value, GST Rate, GST Amount broken up into CGST, IGST, SGST, and Cess.
  • Signature of sender or authorised person of sender.
  • Details of transportation such as mode and vehicle number.