A manufacturer sends raw material to a job worker’s unit for processing. A business ships sample goods to an exhibition. A company transfers finished goods to its own warehouse in another city. In none of these cases is a sale happening — no invoice should be raised, but the goods are moving. The document that covers this movement is a delivery challan.
Use the generator below. Change the heading to “Delivery Challan” in the notes, add the vehicle number and driver details in the notes section, and download the PDF.
When you need a delivery challan instead of an invoice
A delivery challan is for goods movement that isn’t a sale. GST rules specifically provide for delivery challans in these situations:
Job work: You send goods to a third-party processor (a fabricator, a stitching unit, a printer) for work to be done on them, and expect the goods back. No supply is happening — you’re just moving your own goods. The delivery challan records what went where.
Goods sent on approval: You send goods to a potential customer who will test them and decide whether to buy. The sale isn’t confirmed yet. You can’t raise an invoice. The challan covers the movement; if the goods come back, the transaction is closed; if the customer keeps them, you raise an invoice.
Branch or warehouse transfers: Moving your own goods between your units or to a warehouse. Still your property, not a sale, but the goods are crossing locations and need documentation for the transporter and for records.
Exhibition or sale-or-return: Goods sent to an event or trade fair. They may come back, may be sold. Challan covers the outward movement.
What a delivery challan must contain
Under Rule 55 of the CGST Rules, a delivery challan must have:
- Date and document number (serial number)
- Name, address, and GSTIN of the consignor (the sender)
- Name, address, and GSTIN of the consignee (the receiver) — or “To be sold” if the buyer isn’t fixed
- HSN code of goods
- Description, quantity (and unit of measurement), and taxable value of goods
- Tax rate and tax amount (if applicable, for supply on approval scenarios)
- Place of supply
- Signature
In the generator, use the invoice fields with the heading changed to “Delivery Challan”, and add vehicle number and transporter name in the notes.
Delivery challan and e-way bill: when both are required
If the value of goods being moved exceeds ₹50,000 and the movement is interstate, an e-way bill is required in addition to the delivery challan. The e-way bill is generated on the government’s e-way bill portal and accompanies the goods during transit. The delivery challan is the consignment document; the e-way bill is the movement permit.
For intrastate movements, check your state’s rules — some states require e-way bills for intrastate movement above their own threshold.
If the movement is for job work and the goods are being sent by the principal to the job worker, the challan serves as the tax invoice for e-way bill purposes.
Job work delivery challan: the 1-year and 3-year rule
For job work specifically, GST has a time limit. Goods sent to a job worker must return (or be supplied from the job worker’s premises) within:
- 1 year for inputs
- 3 years for capital goods
If the goods don’t come back within these limits, the original challan date is treated as the date of supply, and you’re liable to pay GST on it as if it were a sale — plus interest. Keep your delivery challans dated and tracked if you send goods regularly for job work.
Delivery challan vs invoice: the key difference
An invoice records a supply (a sale). A delivery challan records movement that isn’t (yet) a supply. The goods may never become a supply if they come back. If they do become a supply, you then raise an invoice with a reference to the original delivery challan number.
Related: invoice generator for when the supply is confirmed and you’re ready to bill, and the GST invoice template for compliant tax invoices.