Delivery challan is also known as challan of dispatch or slip of delivery. It is an important document produced for the transport of goods from one location to another, which may or may not contribute to sales.
Delivery challan under GST is sent along with the goods and it contains important details of the goods being transported, i.e. quantity, purchaser, and address of delivery. A form is provided by the manufacturer in situations where the selling of products or services does not occur immediately or is not obtained on delivery while paying for the transported goods.
Section 31 of the CGST Act 2017 stipulates that a registered person who supplies taxable goods must issue a tax invoice indicating the quantity, details, value of the goods, tax on goods, etc. along with other details set out in Section 31(1) of the CGST Act 2017. Similarly, the Distribution challan must be given for the shipment of goods, instead of a tax invoice.
What is Delivery Challan?
Delivery challan is also known as challan of dispatch or slip of delivery. It is an important document produced for the transport of goods from one location to another, which may or may not contribute to sales It includes the descriptions of the items being delivered, the number of such goods, the address of the purchaser, and the delivery.
- Original: For the buyer
- Duplicate: For the transporter
- Triplicate: For the seller
When is Delivery Challan issued?
- Goods to be carried for work.
- Goods are shipped in semi-assembled conditions.
- Goods supplied on permission.
- Supply of goods: Where it is not known how much goods are supplied. Don’t know the place where the good is supplied.
- Goods that are carried for a destination other than supply. Example: carriage of goods from one warehouse to another supplier’s warehouse.
Important Notes of delivery challan format
- The full taxable number and latter GST- the latter is the Actual Invoice.
- We will follow up on the terms and conditions laid down by the firms.
- After the verification process, the shipper should approve the delivery challan that the details given in the form are accurate.
- When the goods are transported with a delivery challan as an alternative to a tax invoice, similar details should be provided in the form (GST E-waybill). If a tax invoice could not be circulated at the time of shipment of goods for trade, the seller should originate the tax invoice after the goods have been delivered.
Delivery Challan Format under GST
Delivery challans shall be numbered serially, in one or multiple series, not exceeding sixteen characters. All distribution challan formats must include the following information:
- Date and Challan Delivery Number.
- The Consignor’s name, address, and GSTIN, if registered.
- Name, address, and GSTIN or Unique Identity Consignor number, if registered. Name, address, and place of delivery if unregistered.
- Commodity code HSN.
- Product definition.
- Quantity of delivered goods (provisional, where the exact quantity is not known).
- The supplied value is taxable.
- GST tax rate and the tax amount is broken down as CGST, SGST, IGST and GST cessation – where the transportation is for the consignor to be supplied.
- Place of supply, in case of movement of goods between States.
Delivery Challan Format in Excel
Delivery Challans are relevant most of the time as this is the ONLY WAY for doing business. For instance, the invoice can’t be made at that time or later, too. So people need an excellent format with the features below
- Supply of products subject to approval
- Goods supplied for further processing, i.e. for job work.
- Transfer purpose Inter-company or Go-down
- Semi-finished goods are supplied from one department to another.
A well-drafted challan delivery format crafted according to the guidelines set out in Goods and Service Tax. Refer to this format that can be conveniently modified according to your company’s requirements. This delivery challan contains all the important details required for delivery such as the name and address of the consignor, the product description, the applicable GST, etc.
Use this sample for your business to enjoy trouble-free working. This Challan is normally used when purchasing orders and delivering goods to any person or company. This document was considered as proof of delivery with a person receiving and delivering signature. The format includes the date, information about the seller, quantity of the product, a summary of the delivered goods.
Multiple Challan of delivery
- The entire invoice had to be distributed before the actual consignment of the goods.
- The shipper is obliged to originate challan delivery on all the consequent shipments, with a recommendation to the first invoice.
- On the last adjacent delivery real challan needs to be given with copies of all the delivery challans up to the date of the first consignment.
It’s also important to note that it’s mandatory to include a serial number in a delivery challan. That’s because a serial number marks a challan and makes reference to a specific challan simple. Furthermore, in cases where the receiver of the goods is not registered, the location of a business must be mentioned in a challan of delivery.