Delivery Challan under GST Rule 55: Complete Guide

What is a Delivery Challan under GST?

A delivery challan is a document that accompanies goods when they are transported without a sale — for job work, exhibition, sales return, or line sales. Unlike an invoice, it does not create a receivable.

When is a Delivery Challan Required?

Under GST Rule 55, a delivery challan is required when:

1. Supply without invoice — goods sent for job work, on approval, or for exhibition
2. Sales return — goods returned by a customer
3. Line sales — goods dispatched from one branch to another
4. Own use — stock transferred between your own warehouses

Mandatory Fields on a Challan

• Challan number and date
• Supplier name, address, GSTIN
• Recipient name, address, GSTIN (if registered)
• Reason for transport — supply without invoice / export / job work / sales return / line sales / exhibition / own use / others
• Place of supply
• Transport mode — road / air / rail / ship
• Vehicle number (for road transport)
• Item details — description, HSN code, quantity, taxable value, tax rate
• Total taxable value

Common Mistakes

• Using a challan when a tax invoice is legally required
• Missing the reason for transport
• Not linking the challan to the originating invoice (for sales returns)

Digital Challans

With managemycounter, you can generate GST Rule 55-compliant delivery challans directly from your invoice — all fields pre-filled, linked to the original sale, and printable in 3-copy format for the driver, customer, and your records.