Delivery Challan Sample Format Download

Essential document for transporting goods safely and compliantly. Learn how to issue and format a delivery challan accurately, with our guide.

By clicking, you agree to OPT-IN for sending

Overview of Delivery Challan

A delivery challan is a document that lists the goods being delivered from one place to another. It is also known as a dispatch challan or delivery slip. A delivery challan is typically issued by the seller or supplier to the buyer or customer at the time of delivery of the goods. It is a non-negotiable document, meaning that it cannot be transferred to another party.

Purpose of a delivery challan

A delivery challan serves several purposes, including:

To serve as a record of the goods that have been delivered.

To provide evidence of delivery to the buyer.

To help the buyer to verify that the goods received are as ordered.

To help the seller to track inventory levels.

To resolve any disputes that may arise over the delivery of goods.

Information typically included in a delivery challan

A delivery challan typically includes the following information:

Delivery challan number

Date of delivery

Name and address of the seller

Description of the goods

Quantity of goods

Unit price of goods

Total value of goods

Signature of the seller or buyer

Any other relevant information, such as the terms of delivery and payment

Do you want experts help

Get your legal documents reviewed Within 3 hours from an experienced Expert
Deal your legal paperwork confidently with a Lawyer on your side

*₹499 for a 30 min Expert Consultation

When Should a Delivery Challan be Issued?

A delivery challan should be issued whenever goods are delivered from one place to another, regardless of whether the goods are being sold or transferred. This includes deliveries between different branches of the same company, deliveries to customers, and deliveries to third parties for processing or storage

Companies That Use Delivery Challans

Delivery challans are used by a wide variety of companies, including:

Trading companies that buy and sell goods

Manufacturing companies that produce and sell goods

Logistics companies that transport goods on behalf of other companies

E-commerce companies that sell goods online and deliver them to customers

Retail companies that sell goods to customers in stores

Wholesalers that sell goods to other businesses

Distributors that sell goods to retailers and wholesalers

Courier companies that deliver small packages and documents

What Is the Format and Contents of a Delivery Challan?

The format and contents of a delivery challan may vary slightly depending on the specific requirements of the business or country. However, there are some general guidelines that can be followed.

Format

A delivery challan is typically formatted as a table, with the following columns:

Delivery challan number

Date of delivery

Name and address of the seller

Name and address of the buyer

Description of the goods

Quantity of goods

Unit price of goods

Total value of goods

Signature of the seller or buyer

Contents

The following information should be included in the delivery challan:

Delivery challan number: This is a unique number that is assigned to each delivery challan. It helps to track and identify the delivery.

Date of delivery: This is the date on which the goods are delivered to the buyer.

Name and address of the seller: This is the name and address of the business that is selling the goods.

Name and address of the buyer: This is the name and address of the business or individual that is purchasing the goods.

Description of the goods: This is a detailed description of the goods that are being delivered. This should include the product name, model number, and any other relevant information.

Quantity of goods: This is the number of units of each good that is being delivered.

Unit price of goods: This is the price per unit of each good.

Total value of goods: This is the total value of all of the goods that are being delivered, calculated by multiplying the quantity of each good by its unit price.

Signature of the seller or buyer: This is the signature of the person who is authorised to sign on behalf of the seller or buyer.

GST Delivery Challan Rules to Note

Here are some important GST delivery challan rules to note:

A delivery challan must be issued in triplicate for the supply of goods.

The original copy must be marked as 'ORIGINAL FOR CONSIGNEE'.

The duplicate copy must be marked as 'DUPLICATE FOR TRANSPORTER'.

The triplicate copy must be marked as 'TRIPLICATE FOR CONSIGNOR'.

The delivery challan must include the following information:

Delivery challan number

Date of delivery

Name and address of the consignor

Name and address of the consignee

Description of the goods

Quantity of goods

Taxable value of goods

GST tax rate and tax amount broken down as CGST, SGST, IGST and GST Cess – where the transportation is for supply to the consignee

Place of supply, in case of inter-state movement

Signature of the consignor or authorized person

The delivery challan must be issued at the time of removal of the goods from the place of business of the consignor.

The delivery challan must be retained by the consignor, consignee, and transporter for a period of 5 years.

Tax Invoice and Delivery Challan

Here is a table of differences between tax invoice and delivery challan:

Tax Invoice	Delivery Challan
Has the ownership proof and legal responsibilities.	No information on the ownership provided
Shows the actual value of goods, including the applicable taxes.	Displays the rate of a particular product but not the full value of the sale.
Only after the sale transaction, a tax invoice is provided.	May or may not result in a sale.

Why Vakilsearch ?

We now understand what a delivery challan is and what it is used for. You can get assistance from the legal specialists at Vakilsearch with the issuance and formatting of a delivery challan. Vakilsearch also offers professional guidance on all topics.

Frequently Asked Questions (FAQs)

Who drafts the delivery challans?

The delivery challans are created by the seller to the buyer.

What distinguishes a delivery challan from a delivery note?

A delivery note is only a piece of paper that comes with a package of goods. Contrarily, delivery challans are issued when delivering items to the customer and have an effect on inventory levels because they reduce inventory stock.

Is there a non-returnable delivery challan?

Yes! When the goods are delivered permanently, the authorities understand it by seeing the non-returnable gate pass along with the delivery challan.

What is meant by a returnable challan?

A returnable challan will be generated for any items that are taken out of the warehouse for a specific purpose and must be brought back soon.

Can a delivery challan be used to create an e-way bill?

Yes. The GST portal allows any registered transporter or taxpayer to create an e-way bill. Documents like a tax invoice, a bill of sale, a delivery challan, etc. can be included when generating an e-way bill.