Delivery Challan under GST

Prakash Matre
Prakash Matre at December 21, 2022

What is Delivery Challan under GST?

GST Delivery Challan


As an enterprise or logistics head, does the question on invoice cum delivery challan arises in your mind too? Then this article will provide all the answers to your question right from the beginning.

The scope of this content includes Delivery Challan under GST, tax invoice cum delivery challan, delivery challan format under GST, how to generate delivery challan in GST and E invoice for delivery challan.

What is a Delivery Challan?

Delivery challan, slip of delivery or delivery challan GST, is an instrument that carries details about the delivered goods such as quantity, condition and description. This tax invoice cum challan also contains the recipient details, delivery location and time. The principal purpose of Eway Bill delivery challan is transfer of goods. You'll also find FAQ on delivery challan under GST in this section.

Normally, three copies of Delivery Challan are generated:

  • First for the Buyer
  • Second for the transporter
  • Third for the Seller

It shall be noted that delivery challan is communicated with the transported goods. It is an important document that is used by nearly by every business for a day-to-day transaction.

Difference between Invoice and Delivery Challan

What is the difference between an invoice and a delivery challan? Is the most common question that pops-up in the mind, as their functionalities are pretty much same

Particulars Delivery Challan Invoices
Meaning A delivery challan/slip or note helps to acknowledge that goods are received or accepted by the customer. It does not transfer any legal ownership or rights. An invoice or bill is a document through which the customer accepts the full-ownership, along with risk, rights and liabilities of the goods.
Contents Quantity, condition and description of goods Quantity, description, GST rate, HSN code and amount payable
When to send? When goods are dispatched At the time of dispatching of goods
Accounting entries Cannot be used for making entries in the books of account. Provides a base for entries in the books of accounts.
Acknowledgement It shall be acknowledged by the recipient or customer. The customer or recipient need not to acknowledge.
Taxable value of goods Taxable value of goods An invoice contains the taxable value of goods.

However, a delivery challan & tax invoice can be combined together to form "delivery challan cum tax invoice."

Delivery Challan Format

After all this information about the GST delivery challan format, you must be looking out the formatting or the contents of the delivery challan. Here are the most critical aspects that must be included in a format of delivery challan under GST.

  • Delivery challan date
  • Delivery challan's serial number
  • Registered supplier's name
  • Buyer's name and identity
  • The quantity and the details of the goods, along with their HSN codes
  • The name and address of the transporter or consignor
  • Delivery Place
  • Signature

To make an errorless challan, capture the fine details of the goods such as their taxable value, description, HSN code.

It shall be noted that delivery challan serial number is mandatory as it helps in its identification and makes it easier for future references. Moreover, in a case, if the person who is receiving such goods is unregistered, the place of a business must be clearly specified in a delivery challan.

When to issue a Delivery Challan?

You must be probably striving for a resolution to this question. These are the situations that impel you to generate a delivery challan:

  • In a situation where the business place of a supplier is not disclosed to the person receiving such goods
  • Supplying goods on approval basis
  • To transport job work goods such as machinery, dices etc.
  • The number of goods cannot be determined at the time of dispatch (e.g. Liquid gas)
  • Transportation of semi-assembled goods or completely in parts

Under any of these scenarios, a delivery challan can be generated and issued.


The Conclusion

Book or record-keeping is a vital culture among successful enterprises, as they maintain proper records of each and every important document. One such document is a delivery challan.

Further, you can create and generate an errorless delivery challan, invoices and sales or purchase order in a few clicks, using auTotax GST software. In addition to this, autoTax helps you to automate all your GST compliances as it can be integrated with all the leading ERPs easily.

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