Delivery Challan under GST (Rule 55): When You Need One and What It Must Show

Short answer: under Rule 55 of the CGST Rules you issue a delivery challan instead of a tax invoice when goods move without a sale at that moment — for job work, for reasons other than supply (repair, exhibition, approval, moving stock between your own premises under the same GSTIN), or when the quantity is not known at dispatch, such as liquid gas. It needs a serial number, date, both parties' details, HSN, description, quantity, value and signature, in three copies.

This guide explains the general GST rules as published by CBIC. Rates, thresholds and notifications change; confirm your own case with your CA before relying on it.

When you need a delivery challan

• Goods sent to a job worker and back.
• Goods sent for repair, testing, exhibition or on approval.
• Stock moved between your own premises under the same GSTIN.
• Supply of liquid gas where the quantity is not known when it leaves.
• Goods sent in batches (completely or semi knocked down) where the invoice is issued before the first batch, with a challan for each batch.

If the goods are actually being sold at dispatch, you need a tax invoice, not a challan.

What a delivery challan must show

• Date and a serial number (up to 16 characters, unique for the financial year).
• Name, address and GSTIN of the consignor.
• Name, address and GSTIN (if registered) of the consignee.
• HSN code and description of goods.
• Quantity (provisional where exact quantity is not known).
• Taxable value, tax rate and tax amount where the movement is towards a supply.
• Place of supply for inter-state movement.
• Signature.

Three copies

Original for the consignee, duplicate for the transporter, triplicate for the consignor.

The e-way bill still applies

A challan does not replace an e-way bill. If the movement crosses the value threshold, generate an e-way bill and carry the challan with it.

Is Grovia right for this?

Honestly, no: Grovia is built for service businesses and does not issue delivery challans or e-way bills, or manage stock. If you move goods every day, use a billing and inventory tool built for that. If you are a service company that ships occasional equipment, keep a challan book alongside Grovia's invoicing.

Grovia is one platform for service businesses — leads, quotations, GST invoicing, accounts, projects, HR and support. Start a free 14-day trial (no card needed).

Frequently Asked Questions

When is a delivery challan issued under GST?

When goods move without a sale at that moment — job work, repair, approval, exhibition, own-stock transfers under one GSTIN, or when quantity is unknown at dispatch.

How many copies of a delivery challan are needed?

Three: original for the consignee, duplicate for the transporter and triplicate for the consignor.

Do I need an e-way bill with a delivery challan?

Often yes. The challan does not replace the e-way bill where the movement requires one.

Can a delivery challan be used instead of an invoice for a sale?

No. If the goods are sold at dispatch, a tax invoice is required.