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.