Delivery challan format under GST

A challan is not a demand for payment, so it has no due date or payment terms. It records what left your premises, for whom, why, and at what value. When the goods move for supply to the consignee, it also shows the GST rate and amount.

Under Rule 55(2), the challan is prepared in triplicate for a supply of goods. The original is marked ORIGINAL FOR CONSIGNEE, the duplicate DUPLICATE FOR TRANSPORTER and the triplicate TRIPLICATE FOR CONSIGNER.

Rule 55(1) allows a challan in place of an invoice when you remove goods in these cases:

• Job work. Sending raw material or semi-finished goods to a job worker for processing.
• Liquid gas where the quantity is not known when it leaves your premises. The invoice follows once the quantity is known.
• Movement other than by way of supply. For example, sending goods for repair, or moving stock between your own premises under the same GSTIN.
• Other supplies the Board notifies.

Two related cases are common in practice. Goods sent on approval can move on a delivery challan, with the invoice issued when the sale actually happens (CBIC Circular 10/10/2017-GST). Goods sent in batches, or in semi-knocked-down or completely-knocked-down condition follow Rule 55(5): issue the full invoice before the first lot, send a challan with each later lot quoting that invoice, and send the original invoice with the last lot.

Rule 55(3) says that goods moving on a challan instead of an invoice must be declared as specified in Rule 138, the e-way bill rule. Under Rule 138, a registered person causing movement of goods worth more than ₹50,000 generates an e-way bill, even when the movement is not a supply. Choose the delivery challan as the document when you generate it.

Job work has a special rule. When a principal in one State sends goods to a job worker in another State, the e-way bill is required whatever the value of the consignment. The principal or the registered job worker can generate it. For movement within a State, check your State’s notified limit.

1. 1

   Confirm the reason

   Job work, approval, repair, own-stock transfer, or unknown quantity. If it is a completed sale, issue a tax invoice instead.

2. 2

   Number and date it

   Use a separate challan series and keep the number within 16 characters.

3. 3

   Enter both parties

   Your details and the consignee’s name, address and GSTIN if registered.

4. 4

   List the goods

   HSN, description, quantity (provisional if needed) and taxable value for each line.

5. 5

   Add tax where it applies

   Show the rate and amount if the goods move for supply, and the place of supply for inter-State movement.

6. 6

   Add transport details

   Record the e-way bill number and vehicle number when an e-way bill is needed.

7. 7

   Sign and print three copies

   Consignee, transporter and consigner copies, marked as Rule 55(2) requires.

8. 8

   Close the loop

   Issue the invoice once the supply happens, or track the goods until they come back from the job worker.

• Using a challan for a regular sale to put off the invoice. A completed sale needs a tax invoice on time.
• Leaving out the value. Taxable value is a required field even when no tax is charged on the challan.
• Skipping the e-way bill when the value crosses the limit, or for inter-State job work, where value does not matter.
• Sending stock to a branch in another State on a challan. Branches with different GSTINs are distinct persons, and that movement generally needs a tax invoice.
• Losing track of open challans. Goods on approval or with a job worker must eventually be invoiced or returned.
• Broken numbering. Gaps or repeated challan numbers are hard to explain in an audit.

Delivery challans have their own list under Sales in JustBill, with a separate number series. You set the prefix, and JustBill warns you if the full number goes past 16 characters. Add the consignee, then the items with HSN, quantity and value. JustBill works out CGST + SGST or IGST from your State and the party’s.

• E-way bill number, vehicle number, PO number and a reference number can be recorded on the challan and print on the PDF.
• Saving a challan reduces stock for the product items on it, so your stock reflects goods that have left. See inventory management.
• Customers can acknowledge receipt of a challan from their customer portal link.

Challans sit alongside invoices, quotations and notes in JustBill’s GST billing. For movements that need one, see e-way bill software. Plans are on the pricing page.