written by Khatabook | July 9, 2021

Delivery Challan Format in Excel and Word for Job Work - Khatabook

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Table of Content


Businesses today are geographically diversified and transportation of goods has become inevitable, even for reasons other than supply. Thus while transporting goods from one place to another, a document called “Delivery challan” is issued to keep track of the goods. In this article, let’s understand the basics of the Delivery challan, the rules governing it and how to prepare a proper format for Job work in Excel and Word.

Did you know? The word “Challan” is a Hindi word that has become an Indian English technical word that is now officially used in financial transactions.

What is a Delivery Challan?

As per GST Law, a “Tax Invoice” is issued for the ‘supply’ of goods and services. However, in certain circumstances, goods need to be transported for reasons other than supply, such as stock transfer between branches, job work, transfer to a warehouse, etc. In such cases, instead of a tax invoice, Delivery Challan is issued by the supplier. It is also known as a “Dispatch slip” or “Delivery slip”. 

Manufacturing or Trading Elements

Businesses that are involved in manufacturing or trading use delivery challans. 

The following are the key particulars of a delivery challan

  • Serial number (not exceeding 16 characters)
  • Date of dispatch
  • Name and address of the Supplier
  • Name and address of the Recipient
  • Place of Delivery
  • GSTIN of Supplier
  • GSTIN of Recipient
  • Quantity and Description of the goods
  • HSN code of goods
  • Taxable value 
  • Signature

Types of copies of Delivery Challan

  • Original Copy - for the consignee
  • Duplicate Copy - for the transporter
  • Triplicate Copy - for the consignor

Period of retention of Delivery Challan

According to section 36 of CGST Act, every registered person is required to keep and maintain books of account including delivery challan for a period of 72 months from the due date of furnishing of annual return for the relevant year.

Also Read: Types of GST Returns: Forms, Due Dates & Penalties

Delivery challan vs. Tax invoice

Tax Invoice

Delivery Challan

Tax Invoice is issued for the “supply” of goods

It is issued when goods are transported for reasons other than supply

It is issued for both goods and services

Delivery challan applicable only in case of goods

Tax invoice is a bill that reflects a Sale transaction

The process can be considered as an acknowledgment about the goods sent

Tax amount is shown in the Invoice

In Delivery Challan only Taxable value is shown

Receiver can avail Input tax credit based on Tax Invoice

Input tax credit cannot be claimed based on Delivery challan

Ownership of the goods is transferred

Ownership of goods still remain with Principal

When Do We Issue Delivery Challan?

Rule 55 of the Central Goods and Services Tax Rules, 2017 lays down the circumstances in which delivery challan can be issued.

  • Supply Of Liquid Gas

At the time of removal of goods, if quantity is not known, suppliers can issue a delivery challan instead of a tax invoice.

  • Goods Sent for Job Work

In job work, delivery challan is issued in the following cases:

  • Goods sent by the Principal to Job worker
  • Goods sent by one job worker to another
  • Goods returned by the job worker to the Principal
  • Other Cases

  • Goods are sent on an approval basis

When goods are sent on sale on an approval basis, the sale is confirmed only when the client accepts the goods. Since the goods are removed before supply, a delivery challan is issued.

  • Transportation of works of art to galleries

When artists send their works of art to be displayed at a gallery, it does not amount to a sale unless someone buys them in the exhibition. In such cases, goods are removed by issuing a delivery challan.

  • Sending goods outside India for exhibition

The CBIC Circular clarifies that sending goods out of India to be displayed at an exhibition is neither “Supply” nor “Export”. Thus such goods are sent based on the delivery challan.

  • Transfer of goods in multiple shipments

When goods are transported in multiple shipments, the supplier must issue a tax invoice before the dispatch of the first shipment. After that, every shipment must be accompanied by a delivery challan concerning the tax invoice.

  • Transfer of goods to the warehouse

A delivery challan is issued when goods are transported from factory to warehouse or from one warehouse to another.

Also Read: Important Benefits of Registering for Composition Scheme under GST

Delivery Challan For Job Work

As per Sec 2(68) of the CGST Act 2017, Job work refers to “any process or treatment undertaken by a person on goods belonging to another person”. The ownership of the goods does not transfer to the Job worker but it rests with the Principal.

A Registered person (Principal) can send inputs/capital goods for job work without payment of tax. Similarly, it can be sent from one job worker to another job worker or returned to the Principal on completion of job work without payment of tax. All such movement of goods must be accompanied by a Delivery Challan as per Rule 55.

Delivery Challan Format for Job Work

There is no specific format for a Delivery Challan under the GST Law. However, CGST Rules prescribe the specific particulars it must contain, such as date, supplier and job worker details, their GSTIN, description of goods, etc based on those requirements, let’s understand how to create a Delivery challan template.

We can create a Delivery challan template in varIous ways, as follows:

  • Delivery Challan Format in Excel
  • Delivery Challan Format in Word

The steps and format are the same in both. Following is an outline of a Delivery Challan format.

  1. Basic Details

  • Company logo
  • Name and address of the Principal
  • GSTIN of the Principal
  • Delivery Challan number (serially numbered, not exceeding 16 characters)
  • Type of Delivery Challan (Original/Duplicate/Triplicate)
  1. Details of Job Worker

  • Name and address of the Job worker
  • GSTIN of the Job worker
  • Contact details
  • Description of Job work to be done
  1. Transport Details

  • Name and address of the Transporter
  • GSTIN of the Transporter
  • Mode of Transport
  • Vehicle Number
  • Date of dispatch
  1. Description of goods

  • Serial number
  • Description of goods
  • HSN code
  • Quantity of goods 
  • Unit of measurement
  • Taxable value
  • GST Rate
  1. Terms and conditions

This section contains the terms and conditions on which the goods are sent. 

Also Read: GSTR-1 – Return Filing, Format, Eligibility & Rules

Conclusion

Record keeping is one of the essential functions of an organization. An entity maintains various documents, one of which is the delivery challan. To make a challan efficiently, one must seize the unique details of the goods, such as the HSN codes, the taxable amount, and the description.
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FAQs

Q: Can a delivery challan be considered proof of delivery?

Ans:

Yes. Since delivery challan is an acknowledgement of receipt of goods, it can be considered as proof of delivery.

Q: What is the difference between a delivery challan and a tax invoice?

Ans:

As per section 31 of the CGST Act, 2017, a tax invoice can be issued only when goods are removed for ‘supply’. However, a delivery challan is issued when goods are to be removed even without supply as per Rule 55.

Q: What is the difference between an e-way bill and a delivery challan?

Ans:

The GST Portal automatically generates an E-way bill, whereas the supplier prepares a delivery challan. E-way bill is mandatory only for certain persons, and hence others issue delivery challans for the transport of goods.

Q: Is delivery challan mandatory even in case of Intra-state transfer?

Ans:

Yes. For every movement of goods, delivery challan is mandatory, even within the State.

Q: Can the principal claim ITC even if goods are directly sent to the Job worker?

Ans:

As per Sec 16 of the CGST Act, 2017, one of the conditions for claiming ITC is that the goods must have been received, however, where goods are sent for job work directly, it shall be deemed that goods have been received, and hence principal can claim ITC.

Q: How many copies of the delivery challan must be issued?

Ans:

As per Rule 55 of the Central Goods and Services Tax Rules, 2017 the delivery challan has to be issued in triplicate (3 copies). However, some businesses prepare it in Quadruplicate (4 copies) as follows:

  • Original for Job worker
  • Duplicate for Transporter
  • Triplicate for the Principal (Sales department)
  • Quadruplicate for the Accounts department of the Principal

Q: Who is liable if a product or good is not returned in a given period during a job work?

Ans:

The principal or supplier of the raw material is answerable to pay the GST on the goods if they do not return within the stipulated time.

Q: Can we use a delivery challan instead of an e-way bill?

Ans:

In certain cases, when an e-way bill cannot be issued while transporting goods, a delivery challan is used instead.

Q: Can a delivery challan be used while transporting items between different states?

Ans:

Yes, a delivery challan is used during interstate good transportation. The challan should contain the delivery location details.

Q: Does the delivery challan contain details of the transport?

Ans:

Yes, the challan should contain the details of the mode of transport and the vehicle details.

Q: When is a Delivery Challan Issued?

Ans:

A delivery challan is issued in the following situations:

  • When the specific quantity of goods supplied is unknown
  • Goods transported for job work
  • Transported goods not considered as sale or supply

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.