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GST reference · movement of goods

Delivery challan format — when to use one, and what it must contain.

Not every movement of goods is a sale. Here's when a delivery challan replaces a tax invoice, the fields Rule 55 requires, and a filled example for job work. TatvaBooks generates the correct format automatically.

  • Reviewed July 2026
  • 5 min read
  • CA Anil Agarwal & the TatvaBooks team

What is a delivery challan?

A delivery challan is the document that accompanies goods while they're in transit, used when the movement is not a sale — so no tax invoice applies at that point. It's prescribed under Rule 55 of the CGST Rules, and unlike a tax invoice, it carries no GST charge — only a reference "taxable value" needed for e-way bill purposes.

Confusing a delivery challan with a tax invoice — or the reverse — is a common GST slip-up. Get the distinction wrong and you either under-report a real sale, or wrongly show a non-sale movement as GST turnover.

When a delivery challan is used, not a tax invoice

Five situations cover almost every real-world case:

Job work

Sending raw material or semi-finished goods to a job worker for processing, and receiving them back — no sale has happened, so no tax invoice is raised.

Supply on approval

Goods sent to a prospective buyer to inspect or trial before they commit to purchase — common for machinery, jewellery and high-value equipment.

Semi-knocked-down (SKD) or completely knocked-down (CKD) supply

Goods transported in multiple lots or vehicles — each vehicle carries a delivery challan referencing the same consignment, with the tax invoice raised only once, on completion.

Transfer between own branches

Stock moved between two locations of the same business (same GSTIN or distinct GSTINs of the same entity) for reasons other than sale.

Goods returned or sent for repair

Movement of goods for repair, testing, or return to the supplier, where ownership doesn't change hands.

In every case above, ownership of the goods doesn't change hands at the moment of movement — that's the test. If a sale is actually happening, you need a GST tax invoice, not a challan.

Mandatory fields on a delivery challan

Challan identity

  • Challan number — consecutive, unique per FY
  • Date of issue

Consignor (sender)

  • Name, address and GSTIN of the person sending the goods

Consignee (receiver)

  • Name, address and GSTIN of the person receiving the goods (if registered)

Goods details

  • Description of goods
  • HSN code
  • Quantity
  • Taxable value (for e-way bill purposes, even though no tax is charged)

Reason & transport

  • Reason for transportation (job work / supply on approval / SKD-CKD / others)
  • Mode of transport and vehicle number
  • Place of supply, if relevant

A filled delivery challan — example

Here's a delivery challan for a Coimbatore textile manufacturer sending fabric to a job worker for dyeing — no sale, goods to be returned after processing.

Delivery Challan

Sri Meenakshi Textiles

Tirupur Road, Coimbatore, Tamil Nadu — 641002

GSTIN: 33DDDDD3333D4Z8

Challan No: SMT/DC/0089

Date: 02-Jul-2026

Reason: Job work (dyeing)

Consignor

Sri Meenakshi Textiles

Coimbatore, Tamil Nadu

Consignee

Kumaran Dyeing Works

Tirupur, Tamil Nadu — GSTIN: 33EEEEE4444E5Z9

Description HSN Quantity Taxable value (ref.)
Grey cotton fabric, unprocessed 5208 800 Metres ₹1,20,000

Transport: By road, Vehicle No. TN 39 AB 1234

No tax is charged on this document — goods to be returned after job work.

For Sri Meenakshi Textiles
Authorised Signatory

You can copy this structure into Excel for occasional use. The consignment value shown here (₹1,20,000) is what feeds the e-way bill, since it crosses the ₹50,000 threshold for road transport.

Keeping challans and invoices from getting mixed up

The practical risk with delivery challans is bookkeeping, not compliance on the document itself: a challan that gets miscoded as a sale inflates your GST turnover, and a real sale billed as a challan under-reports it. TatvaBooks keeps delivery challans as a separate document type from tax invoices — correctly excluded from your sales register and GSTR-1, but still linked to the eventual invoice (for job work returns or approval sales) so nothing falls through the cracks.

Free to start on the Solo plan (₹0); the Business plan (₹599/month) adds inventory tracking so job-work stock movements reconcile automatically. See the full GST billing software feature set.

Frequently asked questions

What is a delivery challan format under GST?
A delivery challan is a document that accompanies goods in transit when no tax invoice is raised — because no sale is happening at that point. It must show a consecutive challan number and date, the consignor's and consignee's details, a description of goods with HSN code and quantity, the taxable value, and the reason for transportation. It is prescribed under Rule 55 of the CGST Rules.
When should I use a delivery challan instead of a tax invoice?
Use a delivery challan when goods move without a change of ownership at that moment: sending material to a job worker, sending goods on approval for the buyer to inspect, transporting in multiple lots (SKD/CKD), moving stock between your own branches, or sending goods for repair or return. If a sale is actually happening, you need a tax invoice, not a challan — see our GST bill format page for that.
Does a delivery challan need GST amounts on it?
No tax is charged on a delivery challan since it isn't a supply. You do still need to show the taxable value of the goods (the value if they were sold) — this is required so the e-way bill can be generated correctly, since e-way bills need a value even for non-sale movements.
Is an e-way bill required with a delivery challan?
Yes, if the consignment value crosses ₹50,000 (or your state's threshold) and it's moving by road, an e-way bill is required regardless of whether you raise a tax invoice or a delivery challan. The delivery challan number and details go into the e-way bill as the supporting document.
What happens after job work is completed — do I still need a tax invoice?
The job worker doesn't raise a tax invoice for the material they process (since they don't own it) — only for their job work charges. When the finished goods are eventually sold, the original owner raises the tax invoice at that point. The delivery challans for the to-and-fro movement are retained as proof of the goods' movement, not as tax documents.
Can I generate a delivery challan in TatvaBooks?
Yes — TatvaBooks has a delivery challan document type separate from tax invoices, with the consignor/consignee, HSN, quantity and reason-for-transport fields built in, correctly excluded from your GST turnover and sales register since no supply has occurred. Free to start on the Solo plan.

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Free on Solo · no card · challans kept separate from sales

Generate delivery challans that never get mixed up with your sales.

A distinct document type for job work, approval sales and stock transfers — correctly excluded from your GST turnover. Free to start.

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