Delivery challan format
A delivery challan accompanies goods that are moving without being sold — to a job worker, to your own branch, on approval, or for testing. It is the document an e-way bill is raised from when there is no invoice to raise one from.
| Description | Qty | Value (for transport) |
|---|---|---|
| Grey fabric — lot GR-4412 | 2,000.0 m | 1,64,800.00 |
| Bardana / packing | 40 bags | — |
- The words "Delivery Challan"
- Date and a consecutive serial number
- Consignor’s name, address and GSTIN
- Consignee’s name, address and GSTIN where registered
- HSN code and description of the goods
- Quantity supplied
- Taxable value — stated for transport purposes, not charged
- Tax rate and amount where applicable
- Place of supply for inter-state movement
- The reason for transportation — job work, branch transfer, approval
- Signature
When a challan is used
Job work sent out or returned, transfers between your own branches, goods sent on approval or for demonstration, and the supply of liquid gas where the quantity is not known at removal. In each case goods move and no sale occurs.
It is still an e-way bill document
The e-way bill rules are about movement, not sale, so a challan-backed movement above the threshold needs one. That is the most commonly missed e-way bill in most businesses.
The goods remain yours
Material at a job worker is still your stock and still on your books. A challan that is not reconciled on return is how businesses lose track of material sitting at third parties for months.
Delivery challan questions
When should I issue a delivery challan instead of an invoice?
Whenever goods move without a supply taking place — job work, branch transfers, goods on approval, goods sent for testing or demonstration. An invoice records a sale; a challan records a movement.
Do I need an e-way bill for a delivery challan?
For movements above the notified consignment value, yes. The e-way bill rules concern the movement of goods rather than the sale of them, and a challan-backed movement is exactly the case people forget.
Does a challan show tax?
It states the value and, where applicable, the tax rate and amount for transport purposes — but no tax is charged to the recipient, because nothing has been supplied.
How long can material stay with a job worker?
There are prescribed periods after which unreturned goods may be treated as a supply, with different periods for inputs and capital goods. Keeping the challan open and reconciled is how you know you are within them.
Related
Track what is out at job workers
tBiz keeps challan-backed stock on your books and reconciles what comes back.