GST Software
Updated on February 18th, 2019 in GST

Delivery Challan under GST

GST Delivery Challan

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



What is a Delivery Challan?

Delivery challan – also known as a delivery slip or dispatch challan, is a document that contains information about the delivered goods such as quantity, condition and description. This challan also contains the recipient details, delivery location and time. The principal purpose of delivery challan is transfer of goods.

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 sent along with the shipped goods. They are like a central piece of paperwork, used by almost every enterprise 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 similar.


Delivery Challan



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.


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.


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 tax invoice and a delivery challan can be merged together to form Tax invoice cum delivery challan.

The format of a Delivery Challan

After all this information about the delivery challan, 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 delivery challan.

  • 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, otherwise consigner
  • The place of delivery
  • 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. This is because a serial number identifies a challan and makes it easier for future references. Moreover, in a case, if the recipient of goods is not registered, the location of a business must be mentioned compulsorily in a delivery challan.

When is a Delivery Challan Issued?

You must be probably striving to find an answer to this question. These are the situations that compel you to generate and issue a delivery challan:

  • In the case, where the business location of a supplier is not disclosed to the recipient of goods
  • Supplying goods on approval basis
  • To transport goods for job work
  • 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 bottom line

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.