Delivery Challan Format: GST Rules and Sample
Delivery challan format explained: when GST Rule 55 allows a challan instead of an invoice, the mandatory fields, a job work sample, and how delivery notes work.
Quick answer: A delivery challan format records goods being moved without a tax invoice. Under India's GST, Rule 55 of the CGST Rules requires a serially numbered challan (up to 16 characters) showing the date, consignor and consignee details with GSTINs, HSN code and description, quantity, taxable value, tax details where it is a supply, place of supply for inter-state moves, and a signature.
Outside India, the same idea goes by the name delivery note: a list of goods that travels with the shipment and comes back signed. This guide covers both. We explain when a delivery challan is allowed, the mandatory fields, a filled-in job work sample, and how a delivery note fits alongside the invoice you create in our invoice generator.
This is general information, not tax or legal advice. GST rules and notifications change, so confirm the current position on the CBIC GST portal or with a qualified adviser before relying on it.
What is a delivery challan?
A delivery challan is a movement document. It tells a tax officer at a checkpoint, the transporter and the receiver what is in the vehicle, where it is going and why. Unlike an invoice, it does not normally ask for payment. It is used when goods move but no sale has happened yet, or when the sale value is not yet known.
In India the challan has a legal basis in GST law. In Pakistan, businesses commonly issue a delivery challan alongside or ahead of the sales tax invoice as proof of dispatch. In the UK, UAE, US and most other markets, the equivalent is a delivery note or a packing slip, which is a commercial document rather than a tax one.
When can you issue a delivery challan under GST (Rule 55)?
Rule 55 of the CGST Rules, 2017 lets a consignor issue a delivery challan instead of an invoice at the time goods are removed, in these situations:
- Supply of liquid gas where the quantity at the time of removal is not known.
- Transport of goods for job work, for example sending parts to a fabricator or components for plating.
- Transport for reasons other than supply, such as sending goods to your own branch in the same state, returning goods after repair, sending samples for testing or moving goods for exhibitions.
- Other supplies that are notified by the government.
The rule also covers two practical cases. Where goods are moved for supply but the tax invoice could not be issued at the time of removal, the supplier issues the tax invoice after delivery. And where goods are sent in semi-knocked-down or completely knocked-down condition across several lots, a complete invoice is issued before the first consignment, with a delivery challan for each later lot referring to that invoice. If either case applies to you, read the rule text in full with your adviser, because the details matter.
A delivery challan is not a substitute for a tax invoice on a normal sale. If you sell goods and know the price and quantity, issue a GST tax invoice. Our GST invoice guide lists the fields that invoice needs.
Delivery challan format: mandatory fields
GST law prescribes the content of a delivery challan, not a fixed design. As long as these particulars are present, you can use your own layout.
| Field | Notes |
|---|---|
| Date and challan number | Consecutive serial number, not exceeding 16 characters, in one or more series |
| Consignor | Name, address and GSTIN (if registered) |
| Consignee | Name, address and GSTIN or UIN (if registered) |
| HSN code and description | Of each item being moved |
| Quantity | Provisional quantity where the exact figure is not known |
| Taxable value | Value of the goods, even when no tax is charged |
| Tax rate and amount | Central, state, integrated or union territory tax and cess, only where the movement is for supply to the consignee |
| Place of supply | For inter-state movement |
| Signature | Of the consignor or authorised person |
Most businesses also add fields that are not mandatory but save time: the vehicle number, transporter name, purpose of movement ("For job work", "Sale on approval"), expected return date, and a receiver's acknowledgement box.
How many copies?
For a supply of goods, Rule 55(2) requires three copies: the original marked "Original for consignee", the duplicate "Duplicate for transporter" and the triplicate "Triplicate for consignor". Printing all three labels on your challan template avoids confusion at the gate.
Delivery challan and e-way bills
Goods moved on a challan are still subject to the transport declaration rules in Rule 138, which governs e-way bills. Whether you need one depends on the consignment value, the nature of the movement (job work has its own provisions) and any state-specific rules. Because thresholds and exemptions have been revised more than once, check the current rules on the official e-way bill portal before you dispatch.
Delivery challan sample: goods sent for job work
A Pune engineering firm sends steel brackets to a registered job worker in the same state for powder coating. No tax is charged because the goods are being sent for job work, not sold.
Delivery Challan DC/26-27/0142 · Date: 23-10-2026
Consignor: Shree Fabricators Pvt Ltd, Bhosari MIDC, Pune · GSTIN: [consignor GSTIN]
Consignee: Coatwell Finishers, Chakan, Pune · GSTIN: [consignee GSTIN]
Purpose: Sent for job work (powder coating), to be returned after processing
Vehicle: [vehicle number] · Transporter: Own vehicle
| # | Description | HSN | Qty | Rate (₹) | Value (₹) |
|---|---|---|---|---|---|
| 1 | MS mounting bracket, 150 mm, uncoated | [HSN] | 400 pcs | 85.00 | 34,000.00 |
| 2 | MS L-bracket, 75 mm, uncoated | [HSN] | 350 pcs | 40.00 | 14,000.00 |
| Total value of goods | 48,000.00 | ||||
The maths: 400 × 85 = 34,000 and 350 × 40 = 14,000, a total value of ₹48,000. The challan carries the value so that the goods can be traced and the e-way bill question can be assessed, even though no GST is charged on the movement itself. Enter the correct HSN codes for your goods; we have left them as placeholders because classification depends on the exact product.
When the job worker returns the coated brackets, they issue their own document for the return, and a tax invoice for their coating charges. Job work also has time limits for the return of goods, so diary the expected return date.
Delivery challan vs tax invoice
| Delivery challan | Tax invoice | |
|---|---|---|
| Purpose | Covers movement of goods | Records a sale and the tax charged |
| Asks for payment? | No | Yes |
| Typical use | Job work, branch transfers, samples, approval sales | Every taxable sale |
| Tax shown? | Only where the movement is for supply | Always, for taxable supplies |
| Copies | Triplicate for supplies of goods | Triplicate for goods, duplicate for services |
Large Indian businesses above the e-invoicing threshold also need an IRN for their B2B tax invoices; delivery challans are outside that system. Our guide to the India e-invoice limit explains who is covered.
Delivery note format for other countries
If you are not in India, you will usually need a simpler delivery note. There is generally no tax rule for its content, so the format is driven by what your customer's receiving team needs:
- Your business name and the delivery note number.
- The customer's name, delivery address and their PO number.
- Item descriptions, codes and quantities ordered, shipped and back-ordered.
- Number of packages and total weight if relevant.
- A receiver's name, signature, date and condition note ("received in good order").
Prices are often left off a delivery note so it can be handed to warehouse staff. The signed copy is your proof of delivery if the customer later says goods never arrived, and it supports the invoice in a three-way match against the purchase order. For exports, a delivery note is not enough: you will need a commercial invoice and usually a packing list.
How to make a delivery challan in Word or Excel
- Create the header with your business name, address and GSTIN, and the title "DELIVERY CHALLAN".
- Add a small table for challan number, date, purpose of movement, vehicle number and place of supply.
- Add consignor and consignee blocks side by side.
- Insert the item table: #, description, HSN, quantity, unit, rate, value. In Excel, value is
=D10*E10and the total is=SUM(F10:F25). - Add tax columns only if you use the challan for supplies where tax applies.
- Finish with signature, receiver acknowledgement and the three copy labels.
A note on our tool: the generator creates invoices, and its document heading is fixed as "Invoice", so it is not suitable for printing a delivery challan. Use the challan format above for the movement, and when it is time to bill, create the tax invoice in the generator with your GSTIN in the tax ID field and the challan number noted in the Notes box.
Next step
Set up a challan series (for example DC/26-27/0001) separate from your invoice numbers, print the three copy labels on your template, and keep a register of challans issued for job work with their expected return dates. When the sale itself happens, raise the invoice in the Corporate invoice template and reference the challan number so your customer can match the two.
Frequently asked questions
What is a delivery challan?
A delivery challan is a document that travels with goods when they are moved without a tax invoice, or before one is issued. It lists what is being sent, the quantity and value, and who is sending and receiving it. In India it is governed by Rule 55 of the CGST Rules, 2017.
When is a delivery challan issued under GST?
Rule 55 allows a delivery challan instead of an invoice in specific cases, including goods sent for job work, liquid gas where the quantity is not known at removal, transport for reasons other than supply, and other notified cases. It is also used when goods are moved for supply but the tax invoice could not be issued at the time of removal.
How many copies of a delivery challan are needed?
For a supply of goods, Rule 55(2) requires the challan in triplicate: the original for the consignee, the duplicate for the transporter and the triplicate for the consignor. Many businesses keep the same three-copy practice for job work and other movements as well.
Is an e-way bill needed with a delivery challan?
It can be. Goods moved on a delivery challan must still be declared as required by Rule 138, which covers e-way bills. Whether an e-way bill is needed depends on the consignment value, the type of movement and state-specific rules, so check the current e-way bill rules before dispatch.
Is a delivery note the same as a delivery challan?
They do a similar job. 'Delivery challan' is the term used in India and Pakistan, and in India it has specific GST requirements. 'Delivery note' is the general international term for a document that lists goods delivered and is signed by the receiver as proof of delivery.
How long can goods sent for job work stay with the job worker?
Under Section 143 of the CGST Act, inputs must come back, or be supplied from the job worker's premises, within one year, and capital goods within three years, of being sent. The Commissioner can extend these periods on sufficient cause. Moulds, dies, jigs, fixtures and tools are not covered by the time limit. If the deadline is missed, the original dispatch is treated as a supply on the date the goods were sent.
Do I need an e-way bill for inter-state job work below ₹50,000?
Generally, yes. The ₹50,000 consignment value threshold that applies to most movements does not help with inter-state job work: when a principal or registered job worker moves goods for job work to another state, an e-way bill is typically required whatever the value. Intra-state job work movements follow state-specific rules, which vary. Because these provisions are amended from time to time, check the current position on the e-way bill portal before dispatch.
When must a tax invoice replace a challan for goods sent on approval?
Goods sent on approval or sale-or-return basis can move on a delivery challan. Under Section 31(7) of the CGST Act, the tax invoice must be issued when the customer confirms the purchase or six months from the date of removal, whichever comes first. So if a customer keeps approval goods beyond six months without deciding, you should treat them as sold and invoice them. Track approval challans in a register with their removal dates.
Can I send goods to my branch in another state on a delivery challan?
Usually not. Under GST, branches registered in different states have separate GSTINs and are treated as distinct persons, so an inter-state branch transfer is generally a taxable supply that needs a tax invoice, even without consideration. A delivery challan suits movements within the same registration, such as to a godown in the same state that is listed on your GST registration. Confirm the treatment with your tax adviser for your specific setup.
What is the difference between a returnable and a non-returnable delivery challan?
A returnable challan covers goods you expect to come back, such as items sent for job work, repair, testing, exhibition or approval. You track it until the goods return. A non-returnable challan covers goods that will not come back, such as supplies where the invoice follows later or certain free samples. These are business labels rather than terms in Rule 55, but marking the type on the challan keeps your register and follow-up simple.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
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