Delivery Challan Format under GST

Delivery challan format (Rule 55)

Print three copies and mark each one. FundRaksha Book generates numbered delivery challans and converts them into tax invoices when the sale happens; the first 300 invoices are free.

DELIVERY CHALLAN
[ORIGINAL FOR CONSIGNEE / DUPLICATE FOR TRANSPORTER / TRIPLICATE FOR CONSIGNER]

Consigner: [YOUR COMPANY NAME]
Address: [ADDRESS]
GSTIN: [YOUR GSTIN]            State: [STATE NAME]   State code: [CODE]

Challan No.: [DC NO. - max 16 characters, e.g. DC/25-26/0231]
Challan Date: [DATE]

Consignee: [CONSIGNEE NAME]
Address: [DELIVERY ADDRESS]
GSTIN / UIN: [CONSIGNEE GSTIN, if registered]
State: [STATE NAME]   State code: [CODE]
Place of supply (for inter-state movement): [STATE NAME AND CODE]

Purpose of movement: [Job work / Supply on approval / Supply of liquid gas, quantity not known / Goods in SKD/CKD condition, lot [N] of [TOTAL] / Exhibition / Branch transfer / Return after repair / Other: [STATE]]
Reference: [PO NO. / JOB WORK ORDER NO. / FIRST INVOICE NO. for lot supplies] dated [DATE]

S.No. | Description of goods   | HSN    | Qty   | Unit | Taxable value (Rs.)
1     | [DESCRIPTION]          | [HSN]  | [QTY] | [UOM]| [VALUE]
2     | [DESCRIPTION]          | [HSN]  | [QTY] | [UOM]| [VALUE]

Total value:                      Rs. [AMOUNT]
Tax (where movement is for supply to consignee):
CGST @ [RATE]%: Rs. [AMOUNT]   SGST/UTGST @ [RATE]%: Rs. [AMOUNT]   IGST @ [RATE]%: Rs. [AMOUNT]

Transporter: [TRANSPORTER NAME]   Vehicle No.: [VEHICLE NO.]
LR / Docket No.: [LR NO.]         E-way bill No.: [EWB NO., if value exceeds Rs. 50,000]

For [YOUR COMPANY NAME]
Authorised signatory: ____________________

RECEIVED the above goods in good order and condition:
Name: [RECEIVER NAME]   Designation: [DESIGNATION]
Signature: ____________   Date and time: [DATE, TIME]   Seal / stamp:

When a delivery challan is used instead of an invoice

Rule 55 allows a challan in place of an invoice at the time of removal in these situations:

• Supply of liquid gas where the quantity at removal is not known.
• Transport of goods for job work, and their return.
• Transport for reasons other than by way of supply: goods sent on approval, for exhibitions, for repair, or to another place of the same business.
• Goods sent in semi knocked down or completely knocked down condition, or in batches: the full tax invoice is issued before the first consignment, and each lot moves under a challan referring to that invoice.
• Other movements notified by the government.

Where goods sent under a challan are later sold (approval accepted, gas quantity determined), a tax invoice must follow. Goods sent on approval must be invoiced when accepted, or within six months of removal, whichever is earlier, under Section 31(7).

How to fill it

1. Use a running challan series, separate from invoices, unique for the financial year.
2. State the purpose of movement clearly; officers checking the vehicle look for it first.
3. Give HSN, quantity, unit and a realistic value, even when no sale is involved. The e-way bill uses the same value.
4. Add tax only where the movement is for a supply to the consignee; for job work or branch transfer within the same GSTIN, no tax is charged.
5. Attach the e-way bill where the consignment value exceeds ₹50,000, and write the LR number and vehicle number.
6. Get the original or a copy signed and stamped by the consignee, with date and time of receipt, and bring that copy back to your office.

Common mistakes

• Using a delivery challan for an ordinary sale in place of a tax invoice. A sale needs a tax invoice at or before removal.
• Never converting approval or sale-or-return challans into invoices, so the stock is gone and nothing is billed.
• Accepting an unsigned challan back from the driver. A challan without the consignee's signature proves only that goods left your premises.
• No link between challan and invoice. Write the challan number on the invoice and the invoice number in your challan register.

Why a signed challan matters when the buyer does not pay

The most common excuse for non-payment is that goods were not received or were received short. A delivery challan signed and stamped by the consignee, matched to the invoice, the e-way bill and the lorry receipt, answers it completely. In a legal notice, an MSME Samadhaan claim or a summary suit, proof of delivery is usually the first thing the other side attacks, and the signed challan is what holds.

Keep the signed copies scanned and filed by customer. If an invoice backed by a signed challan is still unpaid, a free consultation with FundRaksha will confirm the route; 700+ businesses have been paid through FundRaksha so far.