Delivery challan
A delivery challan is the document accompanying goods that are moved without a sale taking place — a branch transfer, goods sent for job work, or items sent on approval.
GST requires a document with every movement of goods, but not every movement is a sale. A tax invoice would be wrong for stock going to your own second godown or cloth going to a dyer and coming back; the delivery challan fills that gap.
It carries much of the same information as an invoice — description, quantity, HSN, value for the purpose of the challan — but it does not charge tax and it does not create a receivable.
Job work is the case that most often goes wrong. Goods sent out for processing must come back within a prescribed period or they are treated as having been supplied, with tax consequences, so the challan is also a clock that someone needs to be watching.
Key facts
- Required for movement of goods otherwise than by way of supply.
- Issued in triplicate: original for the consignee, duplicate for the transporter, triplicate for the consignor.
- Must carry a serial number, description, quantity, HSN and the reason for transportation.
- An e-way bill is still required where the value exceeds the applicable threshold.
- Goods sent for job work must return within the prescribed period or be treated as supplied.
Who this affects
Businesses with multiple locations, and anyone sending goods out for processing.
How YarnTally handles it
Transfers between godowns generate the movement record and the fields a challan needs.
See what else it doesReviewed September 2026. This is general information about how these rules work, not tax or legal advice, and thresholds and due dates do change. Check your own position with your chartered accountant before acting on it.