Delivery challan format for goods that move without a sale
Job work, branch transfers, goods on approval, exhibition stock — the cases where Rule 55 lets you move goods on a challan instead of a tax invoice.
Create a delivery challan freeNot every movement of goods is a sale. Material going to a job worker, stock moving between your own godowns, jewellery sent on approval, machinery going out for repair — in each case goods leave your premises but no supply has happened, so there is nothing to invoice.
Rule 55 covers exactly this. It lets you move the consignment on a delivery challan carrying enough detail for anyone stopping the vehicle to know what is inside, who sent it, where it is going and what it is worth. The challan is also the document an e-way bill is generated from when the value crosses ₹50,000.
What this format must carry
Every field below, with whether it is mandatory and what it is for.
| Field | Required | Notes |
|---|---|---|
| Challan number and date | Consecutive serial number in its own series, for example DC/2627/0117, with the date of issue. | |
| Consignor details with GSTIN | Name, address and GSTIN of the sender — you, in most cases. | |
| Consignee details with GSTIN | Name, address and GSTIN of the receiver where registered. For your own branch, its own GSTIN if separately registered. | |
| HSN code and description | The same HSN you would use on an invoice, with a description clear enough to match against the physical goods. | |
| Quantity, with provisional flag | Actual quantity. Where the exact quantity is not known at dispatch — bulk liquids, for instance — state the provisional quantity. | |
| Taxable value | Value of the goods even though no tax is charged. This is what decides the ₹50,000 e-way bill threshold. | |
| Tax rate and amount | Needed only where the transport is itself a supply. On job work and branch transfers, this stays blank. | |
| Place of supply | Mandatory for inter-state movement, so the correct state is on record if the consignment is checked. | |
| Reason for transportation | Job work, line sales, supply on approval, own use, exhibition or fairs, SKD/CKD consignment. Be specific. | |
| Signature | Signed by the consignor or an authorised signatory. |
Guidance only. GST rules and rates change by notification — confirm the requirements for your business on the CBIC portal or with your CA.
Three copies, three destinations
A delivery challan is prepared in triplicate. The original is marked for the consignee, the duplicate travels with the transporter, and the triplicate stays with the consignor. Marking each copy is part of the rule, not a formality — an unmarked bundle is what draws questions at a check post.
Where goods are sent in semi-knocked-down or completely knocked-down condition across several vehicles, the complete invoice is issued before the first dispatch, each following vehicle carries a certified copy of that invoice along with its own challan, and the original invoice reaches the buyer with the last consignment.
When a challan is the right document
Use it for material sent to a job worker and for the processed goods coming back; for stock transferred between your own godowns or branches; for goods sent on approval where the sale is confirmed only if the customer keeps them; for machinery going out for repair; and for exhibition or demo stock.
For goods sent on approval, the invoice is raised when the buyer accepts the goods, or at six months from dispatch, whichever comes first. This is the one that catches jewellers and furniture dealers out, because approval stock has a habit of sitting at the customer's place for months.
Challan and e-way bill together
A delivery challan does not replace an e-way bill. If the consignment value exceeds ₹50,000, an e-way bill is still required and is generated using the challan as the source document, with the challan number entered in Part A.
The practical mistakes are predictable: no value on the challan because "it is not a sale", a shared number series with invoices, and no closing entry when job work material returns. Track challans as open until they are either closed by a return or converted into an invoice. RetailDek's free invoice generator can produce a challan-style document, and the full product tracks the open ones for you.
Skip the template — generate it
Filling a blank Excel sheet every time is where numbering gaps and missing fields creep in. Our free tool builds this document with the fields already in the right places, and you can download it as a PDF — no sign-up, nothing leaves your browser.
Create a delivery challan freeDelivery Challan Format — FAQs
When no supply is taking place — job work, transfers between your own branches or godowns, goods sent on approval, machinery out for repair, exhibition stock, and consignments where the quantity is not known at the time of dispatch.
Make it the output, not the chore
Save your items and parties once, and every document comes out numbered, GST-correct and ready to print — with the stock and reports updating behind it.
Coming soon