TL;DR: A delivery challan is a GST-compliant document used to move goods without a tax invoice. It is critical for job work, stock transfers, and non-sale movements.

What is a Delivery Challan?

A delivery challan is a document issued for transporting goods when a sale invoice is not applicable. It helps track inventory movement while staying GST-compliant.

When is a Delivery Challan Issued?

A delivery challan is issued when goods move without an immediate sale, such as job work, approval basis, stock transfer, or sale-or-return cases.

E-Way Bill and E-Invoice with Delivery Challan

For goods above the GST threshold, an e-way bill is mandatory even when moved on a delivery challan. E-invoicing applies only when the transaction converts into a sale.

Delivery Challan Format

A valid delivery challan includes supplier and recipient details, goods description, quantity, HSN, and authorization signature.

Procedure for Issuing a Delivery Challan

Delivery challans are issued in multiple copies for accounts, logistics, customer, and records to ensure traceability.

GST Rules on Delivery Challan

GST law allows delivery challans in place of tax invoices when goods movement does not result in sale. Returnable challans are used for temporary transfers.

Difference Between Delivery Challan and Tax Invoice

A delivery challan tracks goods movement, while a tax invoice records sale, ownership transfer, and tax liability.

FAQs

What is a delivery challan under GST?

It is a document used to move goods without issuing a tax invoice, permitted under GST rules.

Is GST applicable on a delivery challan?

No, GST is not charged on a delivery challan as it does not represent a sale.

When is an e-way bill required with a delivery challan?

When the value of goods exceeds the GST-prescribed threshold during transport.

What details must a delivery challan contain?

Supplier details, recipient details, goods description, quantity, and authorization.

What is a returnable delivery challan?

It is issued when goods are temporarily moved and expected to be returned later.