Delivery Challan format: what to include and when to use it
A delivery challan travels with goods when no sale is being invoiced yet. Here is the delivery challan format, what it must include, when to use it instead of a tax invoice, and how it fits with the E-Way Bill.
Rahul Sharma
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9 min read
A delivery challan format is the layout of the document that travels with goods when they move but no sale is being invoiced yet. Use a delivery challan for job work, stock transfers and goods sent on approval; use a tax invoice once the sale is agreed and the price is final. Rule 55 of the CGST Rules lists what the challan must carry.
What a delivery challan format is, in two lines
A delivery challan is a document that travels with goods when they move but no sale is being invoiced yet. The delivery challan format decides how it shows what is on the truck, who sent it and who will receive it.
GST does not prescribe one fixed layout for it. Rule 55 of the CGST Rules lists what it must carry, and the rest of the design is up to you. You can read a summary of Rule 55 on GSTZen. That is why you will see many different challan formats online. Most work well as long as the required fields are there.
A challan is not a bill, and it does not ask the receiver to pay anything. Its job is to describe the movement. The driver, the receiving store, your accounts team and, if the truck is stopped, a tax officer may all read it. A clear delivery challan format saves each of them questions.
This guide gives the decision first, then the fields, the copies and a labelled sample. After that come the E-Way Bill, the invoice that follows and the mistakes to avoid. It is written for business owners, accountants and operations heads at small Indian businesses who are about to move goods without a sale.
Challan or invoice? When to use a delivery challan
If the sale is agreed and the price is final, raise a tax invoice. If goods are moving without a sale, or before the price is final, use a delivery challan.
| Your situation | Use |
|---|---|
| Buyer has agreed, price is fixed, goods are being sold | Tax invoice |
| Goods go for job work | Delivery challan |
| Goods move between your own branches or stores | Delivery challan |
| Goods go on approval or sale-or-return, and the buyer decides later | Delivery challan |
| A large order is delivered in several lots | Complete invoice first; each lot then moves with a challan that refers to it |
Most customers start invoice first, then dispatch. The sale is already agreed, so they raise the tax invoice, generate the E-Way Bill from it and send the goods. A challan is the less common path.
A simple test: ask, “Has the buyer accepted the goods at a final price?” If yes, it is an invoice. If the answer is “not yet” or “it is not a sale”, you are probably looking at a challan, and you need a delivery challan format ready.
Here is a simple example. A furniture maker sends five sofas to a dealer “on approval” with a delivery challan and an E-Way Bill made from that challan. The dealer keeps three sofas, and only then does the maker raise the invoice for those three.
The challan covered the journey of all five sofas, even though only three were finally sold. The invoice came later and covered only what the dealer kept.
If you are on the invoice path, read how to create a GST invoice for the steps. If you are not sure which path applies, ask your accountant before the goods leave.
What to put in a delivery challan format (Rule 55 fields)
A delivery challan format must show the date, a number, and the names, addresses and GSTIN of both sides. It also carries details of the goods and, in some cases, the tax.
This list follows a summary of Rule 55.
| Field | What to write |
|---|---|
| Date and serial number | The date the goods leave, and a unique challan number |
| Consigner details | Your name, address and GSTIN |
| Consignee details | Receiver’s name, address and GSTIN |
| Description of goods | What the goods are, plus the HSN code |
| Quantity | How many, or how much, is going |
| Taxable value | Value of the goods |
| Tax rate and amount | Only where the movement is for supply |
| Place of supply | For movement from one State to another |
| Signature | Of the consigner or an authorised person |
Tax details are shown only where the movement is for supply. Before you finalise your own delivery challan format, check it against the official CGST Rules text or ask your accountant.
Copies in a delivery challan format: who keeps which
For a supply of goods, the challan is prepared in triplicate. The original goes to the consignee, the duplicate goes with the transporter, and the triplicate stays with the consigner.
- Original: the receiver keeps it.
- Duplicate: the transporter carries it.
- Triplicate: you keep it for your records.
Mark each copy at the top, for example “Original for consignee”, so nobody mixes them up at the gate. In the sofa example, the dealer would get the original, the transporter the duplicate, and the furniture maker the triplicate.
A sample delivery challan format, field by field
A sample delivery challan format has the same fields as the Rule 55 table, filled in for the five-sofa case. All names and numbers are made up and marked as examples.
| Field | Example entry |
|---|---|
| Challan no. and date | DC-001, 7 November 2026 (example) |
| Consigner | Sample Furniture Works, example address, example GSTIN |
| Consignee | Sample Home Dealers, example address, example GSTIN |
| Goods | Five sofas, example HSN code |
| Quantity | 5 pieces |
| Taxable value | Estimated value of the five sofas (example) |
| Reason for movement | Sent on approval; price not final |
| Transport | Vehicle number and transporter details |
| Signature | Authorised signatory |
Read it from top to bottom the way a receiver or an officer would: who sent it and when, who is receiving it, what is on the truck, and how it is moving.
The “reason for movement” line is our suggestion, not a Rule 55 field. It is one short line that shows anyone reading why there is no invoice. This is a sample only; check your own fields against Rule 55.
Delivery challan format and the E-Way Bill: what to fill in
In our example, the maker made the E-Way Bill from the challan. Check with your accountant whether your movement needs one.
Treat the sofa case as an illustration, not a rule for every case. Two things matter most when you fill the bill in: the document and transaction type, and the transport details.
Document type and transaction type
Choose the type that matches what is really moving. One mistake we see is choosing “Tax Invoice” when the goods actually move on a delivery challan. Another is choosing “Outward – Supply” for a job-work movement. If the paper in the driver’s hand is a challan, the bill should say so.
Transport and vehicle details (Part B)
A common mistake is leaving the vehicle number blank, mistyping it, or changing the truck mid-route without updating Part B. Without a valid vehicle number, the E-Way Bill can’t be used for road transport. Before the truck leaves, read the number on the bill against the number plate.
The transport details on the bill should match the details on the challan. If the challan changes after the bill is made, check the bill again.
After the goods are accepted: raising the invoice
When the buyer accepts the goods, you raise a tax invoice for what they kept, not for what you sent. In the sofa example, the dealer keeps three of the five, so the invoice is for three.
Until the buyer decides, the challan is the paper that explains the movement. Once the price is final, the invoice covers the part that was sold. The other two sofas are simply not part of that invoice.
Note the challan number on the invoice, or beside it in your records, so the two documents can be matched later. If anyone asks why five sofas left and three were billed, the challan explains the first part and the invoice explains the second.
Orders sent in lots
Orders sent in lots work differently. For goods sent in lots, the supplier issues the complete invoice before the first consignment, and each later challan refers to it. A large order can then move over several days on several challans, with one invoice behind all of them.
This follows a summary of Rule 55, so check the exact wording with your accountant before you rely on it.
Delivery challan format: what to check before dispatch
Before the truck leaves, check four things: whether the sale is final, whether both sides’ names and GSTIN are complete, whether the goods, quantity and value match what is on the truck, and whether the document type and vehicle number are right.
Apni invoice combines GST invoicing, E-Way Bill and Delivery Challan in one workflow. It serves retail, wholesale, distributors, manufacturers and service businesses.
If the sale is final, raise an invoice. If not, use a challan. Most mistakes happen at your desk, before the truck moves:
- Wrong document or transaction type. Picking “Tax Invoice” for a challan movement, or “Outward – Supply” for job work.
- Missing or wrong transport details. A blank or mistyped vehicle number, or a truck change not updated in Part B.
- Values that do not match. The invoice value, GSTIN, HSN code or pincode differ between documents. This usually happens when someone edits a document after the E-Way Bill is made, or types the details by hand.
If you edit a challan after the E-Way Bill is made, check the bill again before the goods move. Let whoever packs the order tick the list off. A short check of your delivery challan format takes far less time than fixing a mismatched record afterwards.
If you want to see how it fits your dispatch work, talk to us about Apni invoice.
FAQs
Short answers to common questions about delivery challans follow. For your own case, your accountant can confirm the details.
Is a delivery challan a tax invoice?
No. A challan travels with goods when no sale is being invoiced yet. A tax invoice records a sale. Once the sale is final, you raise the invoice.
Does a delivery challan format carry GST?
Tax details are shown only where the movement is for supply. For other movements, such as a stock transfer, the challan mostly records what is moving and where it is going. Check your case with your accountant.
Do I need a delivery challan for job work?
Goods sent for job work usually go out on a delivery challan, according to our customers’ experience. Confirm the exact rule for your case with your accountant.
Can I send goods first and invoice later?
For job work, a stock transfer or goods on approval, a challan is usually used for the movement, and the invoice follows once the sale is final. Orders in several lots are different: the complete invoice is issued before the first consignment, and each later challan refers to it.
Can a challan need an E-Way Bill?
In our example, the maker made the E-Way Bill from the challan. Check with your accountant whether your movement needs one. Pick the right document type and transaction type, and keep the vehicle details up to date.
How many copies does a delivery challan format need?
For a supply of goods, three: original for the consignee, duplicate for the transporter and triplicate for the consigner.
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