What is Delivery Challan?

A delivery challan is a document prescribed under Rule 55 of the CGST Rules, 2017, used to accompany goods during movement when it is not possible or appropriate to issue a tax invoice at the time of removal — for example, when the exact quantity or value isn't known yet, or the movement doesn't constitute a taxable supply at that point.

• Supply of liquid gas where the exact quantity is known only after delivery.
• Transportation of goods for job work.
• Transportation of goods for reasons other than supply (for example, moving goods between the taxpayer's own branches or warehouses).
• Goods sent on approval for sale or return.
• Other cases notified under the CGST Rules where a tax invoice cannot accompany the goods at dispatch.

• Date and number of the challan, name/address/GSTIN of consignor and consignee (where registered), HSN code and description of goods, quantity, taxable value, and tax rate/amount where applicable.
• Place of supply, in case of inter-state movement.
• A corresponding tax invoice must generally be issued once the actual supply is finalised (e.g., after job work returns or after an approval sale is confirmed).

• Using a delivery challan as a substitute for a tax invoice in cases that are actually a confirmed sale at the time of dispatch.
• Not issuing the final tax invoice after goods sent on approval are accepted by the buyer.
• Omitting required fields such as HSN code or place of supply from the challan.