How Do I Create a Delivery Challan for Goods?

A delivery challan is a document issued when goods are transported but no invoice is raised — e.g., goods sent on approval, job work, returnable goods, or branch transfers. It does not attract GST unless the underlying transaction is taxable.

Use a delivery challan for: (1) goods sent for job work, (2) goods on approval/sale-or-return, (3) liquid/gas transported by pipeline, (4) supply of goods where quantity isn't known at time of dispatch, (5) branch/inter-unit transfers.

GST is not charged on the delivery challan itself since it is not a tax invoice. However, if the goods are ultimately supplied, a proper tax invoice must be raised. For job work, GST may apply if goods are not returned within the stipulated time.

A delivery challan describes what goods are being sent and the purpose. An e-way bill is a government-portal document required for movement of goods worth >₹50,000. Both may be required simultaneously — the delivery challan accompanies the goods, the e-way bill is the tracking document.

Mandatory: Challan number (unique per FY), date, supplier details, recipient details, description of goods, quantity, unit, taxable value (if applicable), GSTIN of both parties, and signature. If interstate, an e-way bill number should also be mentioned.