Delivery challan under GST: when you actually need one

Quick frame: Rule 55 of the CGST Rules allows goods to move without a tax invoice in specific cases. You use a delivery challan instead. Generate one with the Delivery Challan Generator.

When Rule 55 applies (use a challan, not invoice)

1. Liquid gas supply where quantity is unknown at dispatch (e.g., LPG cylinders, bulk).
2. Job work — sending goods to a job-worker who returns them after processing.
3. Sale on approval — goods sent to a customer who may or may not buy.
4. Inter-branch transfer — between two locations of the same legal entity, same GSTIN.
5. Other notified cases — e.g., supply of art works to galleries.

In all five, the supply event happens later (or doesn't happen at all). Raising a tax invoice would prematurely create GST liability + ITC misalignment.

What to print on a challan

The CGST Rules don't prescribe a strict format, but a usable challan includes:

• Date and challan number (your own series, e.g., DC-2026-0001).
• Consignor name, address, GSTIN.
• Consignee name, address, GSTIN.
• HSN code and description of goods.
• Quantity and unit.
• Taxable value and tax — for the e-way bill, even if no tax is being charged.
• Place of supply.
• Signature.

Triplicate copies (yes, three)

Copy	For	Marking
Original	Consignee	"ORIGINAL FOR CONSIGNEE"
Duplicate	Transporter	"DUPLICATE FOR TRANSPORTER"
Triplicate	Consignor	"TRIPLICATE FOR CONSIGNOR"

Modern practice: one printed challan + the e-way bill PDF on the truck driver's phone. RFID + digital are accepted.

E-way bill rules with a challan

If the consignment value (including tax even though not charged) exceeds:

• ₹50,000 for inter-state
• ₹1 lakh+ for intra-state in most states (varies; check your state)

an e-way bill is mandatory. Generated on the GST e-way bill portal against the challan.

Job work — special two-step process

1. Dispatch — challan with "for job work" mention, e-way bill if applicable.
2. Return — job-worker raises a fresh challan when sending the processed goods back, mentioning the original challan reference.

You must report job-work dispatches in ITC-04 quarterly. Goods not received back within 1 year (inputs) / 3 years (capital goods) are treated as a supply on the original date — GST + interest applies.

Common mistakes

• Using a tax invoice for job-work dispatch — creates incorrect GST liability + buyer ITC issue.
• Skipping the e-way bill — penalty up to 200% of tax + detention of goods.
• Wrong place of supply — drives IGST vs CGST+SGST split if value is added later.
• No serial — gaps trigger questions in audit.

Related tools

• GST Invoice Generator — once the supply event happens.
• Purchase Order Generator — to commit to the underlying buy.

Q. Is a delivery challan a tax invoice? A. No. It only authorises movement of goods. The tax invoice is raised separately when the supply event happens.

Q. Do I charge GST on a delivery challan? A. No GST is charged because there is no supply yet. But you state the taxable value and notional tax for the e-way bill calculation.