Delivery Challan – Procedure for Issuing & Format

Last Updated at: Feb 02, 2021
Delivery Challan – Procedure for Issuing & Format
The Kerala High Court has recently held that the E-way Bill and Delivery Challan necessary for Interstate delivery of exempted goods under GST. The court also observed that non-registration of the consignor, or the alleged misclassification of the goods under transportation, cannot be a ground for detention under Section 129 of the GST Act
  1. What is delivery Challan?

  2. Methods to issue a delivery challan

  3. Delivery Challan Format

  4. When should the delivery challan be issued?

  5. Important places where delivery challan is a must

  6. Why Vakilsearch?

  7. FAQs

What is delivery Challan?

In the day-to-day communication between the buyer and the seller, a Delivery Challan Format plays a significant aspect. According to Section 31 of the CGST Act 2017, it affirms that a person who is registered to supply or transport goods or products that are taxable needs an invoice indicating the quantity and other details. Likewise, for shipping and transportation of goods, the delivery challan is a must. Delivery challan otherwise called the dispatch challan is a piece of formal document that holds up all the knowledge about the delivery of the product such as quality, quantity, and description. This document encompasses the delivery time, location, and time too. It is indispensable to cite that it is attached to the goods which are transported or shipped. 

Methods to issue delivery challan:

According to section 55 (2) of CGST Rules, the delivery challan needs to be sent as triplicates.

Sometimes, at least four copies of this delivery challan have to be printed:

  1. For the accounts department
  2. Additionally, for the sales department ( seller ) for maintaining a record
  3. For the buyer
  4. For the transporter

Delivery Challan Format

After knowing what a delivery Challan is, we are sure queer to know about the format or the contents written in the Delivery Challan. There are a few important features that need to be pointed out in the delivery Challan format. Let’s get to know the precise and accurate details in the delivery challan:

  • Date
  • Serial number
  • Supplier’s number of the person registered
  • Name and address of the supplier
  • Quantity and other details about the particular goods including the HSN number of the product.
  • Transporter or the consignor’s details which includes name and address
  • The venue of the delivery
  • Signature

get legal notice now

In order to procure an errorless delivery challan, make sure that you write all the descriptions, taxable value, the HSN number, and the GST, CGST details accurately.

Of all, the registration number is the most important key factor in the delivery challan. It helps in identification and also helpful for further future references.

When should the delivery challan be issued?

There are many situations and solutions for the question “When to issue the delivery challan?” Let us see all the possibilities:

  • If the supplies have approval
  • Additionally, if the business place of the supplier does not disclose to the person receiving such goods
  • Goods that ships to workplaces
  • Shipping or transporting huge goods such as dice, machinery, etc.
  • During the time of dispatch, if the number of goods or products are not determined. For instance, Liquid gas
  • Additionally, semi-assembled goods if being transported or if the goods are in part

One of the reasons behind the success of the leading enterprises is that they maintain the records neatly.

Important places where delivery challan is a must:

There are a few situations where the delivery challan is a must. They are:

  • Approval based goods
  • Shipping artwork to galleries
  • For exhibition purpose, while transporting goods
  • While export promotion
  • Further, shipping or transportation of goods in multiple shipments
  • During the time of removal, if a tax invoice is not issued
  • E-Way bill GST

Why Vakilsearch?

  • We help you to generate errorless and flawless delivery challan
  • Moreover, we offer you the best solutions for all financial queries
  • Vakilsearch has created thousands of happy and satisfied customers
  • Further, we have well experienced and professionals
  • No hidden charges will be charged
  • On-time delivery
  • Additionally, VakilSearch helps you provide instant updates about the process and guide you through the process
  • We are registered duly licensed
  • Hence, Vakilsearch is a common and trustworthy platform for all services.


1. How many copies of the delivery challan should I hold?

You need to hold at least three copies of the delivery challan

2. Can we return goods after delivery?

Since not all the goods selling after delivery. The remaining goods that are not sold come under partial return. In order to return the partial return goods, the delivery challan must be invoiced.

3. What is the difference between the delivery note and delivery challan?

A delivery note is simply a note that tells us the details about the quantity, delivery place, time, etc. Whereas, a delivery challan is a legal and formal proof of ownership

4. Is the delivery challan under GST?

Yes, the delivery challan is under GST. 


Senior Executive - Content in Vakilsearch | Former TEDxSKCET Licensee | Content Marketing | Psychology | Engineering (IT) | Google Developers Group (GDG) co-organizer | WTM Ambassador