A delivery challan is a document issued by the supplier that accompanies goods in transit, listing the items, quantities and the consignee, and is acknowledged by the recipient on delivery. Under Rule 55 of the CGST Rules it is the prescribed document when goods move without a tax invoice, for example for job work, supply on approval, transport of goods in multiple consignments, or movement for reasons other than supply. In ordinary sales it accompanies the tax invoice and provides the signed proof of delivery and acceptance.
How delivery challans work in India
The supplier prepares the challan with the goods, the driver carries it, and the buyer's stores or security signs and stamps the copy that returns to the supplier, often noting the date, time and any shortage. In many trades the challan is the only document the buyer signs at all, which makes it the acceptance record for the MSMED Act (the 15-day objection window runs from this date) and the delivery record for limitation. For job work, challans sent and received must match within the statutory period or the movement is treated as a supply.
- Insist on a signature, stamp and date on the returning copy.
- Note shortages on the challan at the time, not later.
- File the challan with the invoice and e-way bill it relates to.
Why it matters for getting paid
Buyers who dispute payment often claim short delivery, late delivery or non-receipt. A challan signed by their own staff on the day, with no shortage noted, answers all three. It also establishes "the day of acceptance" under Section 2(b) of the MSMED Act, from which the 15 or 45 days run. See GRN, e-way bill and the 15-day rule.
How FundRaksha uses it
FundRaksha's advocates cite the signed challan for each invoice in the notice, with the date of acceptance and the resulting due date, so the buyer sees that the delivery and timeline are documented. Clients are given a simple delivery-document checklist at the free consultation. Fee: 30% of recovery; dedicated advocate within 24 hours.
Worked example (hypothetical)
A Faridabad auto-component supplier (micro enterprise) delivers 5,000 brackets on 3 April; the buyer's stores stamp and sign the challan "received 5,000 pcs, 3 April". No written objection follows within 15 days. Under the MSMED Act, acceptance is 3 April and, with 30-day written terms, payment is due 3 May. On 20 June the buyer emails that 400 pieces were defective. The objection is outside the 15-day window, so the Section 15 clock has been running since 3 May. Interest on the ₹3,00,000 invoice, assuming a 6.5% bank rate (19.5% a year, monthly rests), is about ₹7,900 to 20 June, and the quality claim is a separate matter for the buyer to prove.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.