Free Delivery Challan Generator
Create a Rule 55 compliant delivery challan for goods moving without a tax invoice — job work, stock transfers, sale on approval — and download it as a PDF.
Challan summary
A challan states the value of goods for transport purposes. It is not a tax invoice and does not create a GST liability.
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Movement without a supply
GST taxes supply, not movement. But goods often need to move before any supply has taken place — to a job worker for processing, to another of your own warehouses, or to a customer who has not yet decided to buy. A delivery challan is what accompanies that movement, recording what is going where and why, without creating a tax liability.
The cases Rule 55 covers
The main ones are job work, supply on approval or sale-or-return, transfers between your own registered premises, and goods sent to exhibitions or trade fairs. There is also a specific provision for liquid gas where the quantity at dispatch is not known. Outside these situations, if a supply is happening, you need a tax invoice instead.
Job work has a clock on it
This is the detail that catches businesses out. Inputs sent to a job worker must return within one year, and capital goods within three. Miss the deadline and the original movement is deemed to be a supply on the day it went out, with tax and interest payable from that date. Since the challan is the document that establishes when the goods left, keeping the series properly numbered and filed is not just paperwork.
Challans and e-way bills are separate
People often assume that moving goods on a challan avoids the e-way bill. It does not. If the consignment value crosses the threshold, an e-way bill is required regardless of whether the accompanying document is an invoice or a challan. The two answer different questions and both may be demanded in transit.
Frequently asked questions
- When do I issue a delivery challan instead of a tax invoice?
- Rule 55 of the CGST Rules allows goods to move on a delivery challan where a tax invoice is not appropriate — goods sent for job work, supply on approval or sale-or-return, transfers between your own premises, liquid gas where the quantity is not known at dispatch, and goods sent to exhibitions. In each case the movement is not yet a supply, so no invoice is due.
- What must a delivery challan contain?
- Date and a serial number, the consignor's name, address and GSTIN, the consignee's details, the HSN code and description of goods, the quantity, the taxable value, the tax rate and amount where applicable, the place of supply for inter-state movement, and a signature.
- How many copies of a challan are needed?
- Three for goods: the original for the consignee, a duplicate for the transporter, and a triplicate for the consignor. Some businesses print all three on one page and mark them accordingly.
- Do I still need an e-way bill with a challan?
- Yes, where the consignment value crosses the e-way bill threshold. A delivery challan and an e-way bill serve different purposes — the challan documents what is moving and why, the e-way bill is the transport authorisation. Movement on a challan does not exempt you from the e-way bill requirement.
- How long can goods stay out on a job work challan?
- Inputs must return within one year and capital goods within three years, or the movement is treated as a supply and tax becomes payable. Keeping challan dates recorded is what makes that deadline trackable.
- Should challan numbers follow my invoice sequence?
- No. Keep a separate series for challans. Invoice numbers must run consecutively for GST purposes, and mixing challans in creates gaps you will have to account for.
Related free tools
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Goods out on job work, and no idea what is still outside?
A challan is only useful if you can find it again. Inputs sent for job work must come back within a year or the movement becomes a taxable supply. Smart Dhandha keeps your parties, documents and billing history in one place so those deadlines stay visible.
- Party records reused across every document
- Billing, invoices and challans in one history
- Compliance dates tracked rather than remembered
This tool is provided free for general guidance and uses the rates noted above. Statutory rates change, and individual circumstances differ — please confirm with your accountant or a qualified professional before relying on these figures for filing or payroll.