Can I issue a delivery challan without an invoice?

Yes, in the situations Rule 55 allows: job work, goods sent on approval or return basis, supply of liquid gas where quantity is unknown at dispatch, goods sent in multiple lots against one invoice, and transfers within the same GSTIN. For a normal sale the tax invoice must be issued at or before dispatch, but a challan can be issued with it for the transporter.

Is an e-way bill required with a delivery challan?

An e-way bill is required for movement of goods worth more than ₹50,000, whether the movement is under an invoice or a challan, including job work sent inter-state regardless of value. Generate it on the e-way bill portal and enter the number in the challan's E-way bill number field so it prints on the document.

Should GST be shown on a delivery challan?

Only when the movement is a supply and tax is applicable, such as goods sent in lots against a single invoice. For job work, goods on approval or intra-GSTIN transfers, no tax is charged, so set the GST rate to zero; the taxable value must still be shown. Tax is finally charged on the invoice issued when the sale happens.

What is the time limit for job work goods to return?

Under Section 143 of the CGST Act, inputs sent for job work must return within 1 year and capital goods within 3 years, otherwise the original dispatch is treated as a supply from that date and GST becomes payable. Keep the challan numbers handy; they are reported in Form ITC-04.

Does a delivery challan reduce my stock?

Yes. In VyaparKit both invoices and delivery challans reduce the stock of saved items, since the goods have physically left your premises. When you later convert the challan to an invoice, stock is not reduced a second time. Purchase bills and goods receipts add stock back.

What happens when I convert a challan into an invoice?

Open the challan and pick GST Invoice or Tax Invoice under Create from this challan. A new invoice is created with the same consignee, items, quantities and rates, taking the next number in your invoice series, and it stays linked to the challan. The invoice posts to the customer ledger; the challan does not.

Delivery Challan

Create GST delivery challans with vehicle and transport details. Free PDF download.

Free account · 5 documents a month freeMade for India · ₹, GST, UPI, WhatsApp

In short

A delivery challan is the document that travels with goods when a tax invoice cannot be issued at dispatch, such as job work, goods sent on approval, or supply in multiple lots. Rule 55 of the CGST Rules governs it. VyaparKit's delivery challan generator records consignee, purpose, transporter, vehicle, LR and e-way bill numbers, HSN and quantities, and can be turned into an invoice later.

Free account required

Create a Delivery Challan in under a minute

Sign in once with Google or email. Your business name, GSTIN, logo, bank details and saved customers fill in automatically. Download a PDF or share a link on WhatsApp. 5 documents a month are free, forever.

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✓Beautiful PDF with your logo and details
✓GST calculated automatically where applicable
✓Saved customers, vendors and items, so no retyping
✓Share link with WhatsApp button and UPI QR
✓Converts to related documents in one click

About the delivery challan tool

Goods move around India before they are sold: a garment unit sends fabric to a dyeing job worker, a furniture showroom delivers a sofa on approval, a machine is shipped in three lots, or stock is transferred between two branches under the same GSTIN. In each case a tax invoice is not yet appropriate, so the goods must be accompanied by a delivery challan that says who is sending what to whom and why. The challan is what a checkpost or a transporter's office will ask for.

Handwritten challan books are still common, and they are the reason quantities on the challan and the invoice do not match, vehicle numbers are illegible, and the e-way bill number is missing. VyaparKit's delivery challan has a Purpose selector (Supply, Job work, For approval, Exhibition, Return, Other), transport fields for transporter name, vehicle number, LR / GR number and e-way bill number, and prints HSN, quantity, taxable value and tax where applicable, all in a DC/26-27 series.

Delivery challans reduce stock for saved items, so your low-stock and valuation reports stay honest. When the goods are accepted, open the challan and choose Create from this challan to make a GST or tax invoice with the same lines, linked to the challan. You can also create a challan from an invoice when the invoice is issued first. Free accounts include 5 challans a month.

How to create a delivery challan

1
Enter the consignee
In the Consignee box pick a saved customer or job worker, or type new details. Add the shipping address if it is different from their billing address.
2
Choose the purpose
Select Purpose: Supply, Job work, For approval, Exhibition, Return or Other. Put the related invoice or order number in Against invoice / order.
3
Fill transport details
Enter Transporter name, Vehicle number (for example DL01AB1234), LR / GR number and the E-way bill number if the consignment value exceeds ₹50,000.
4
Add the goods
Click Add line for each item with HSN, Qty, unit and Rate. Tax is shown where applicable; for job work you may set the GST rate to zero.
5
Create and print
Click Create challan and Download PDF. Print three copies: original for the consignee, duplicate for the transporter, triplicate for you. Convert to an invoice later.

What a delivery challan must contain (Rule 55)

Date and a consecutive serial number, up to 16 characters, unique for the financial year.
Name, address and GSTIN of the consignor (you).
Name, address and GSTIN or UIN of the consignee, if registered.
HSN code and description of the goods.
Quantity, provisional where the exact quantity is not known.
Taxable value, and tax rate and amount (CGST, SGST, IGST or cess) where the movement is a supply.
Place of supply for inter-state movement.
Signature of the consignor, and the purpose of movement (job work, approval, etc.) is good practice.
Prepared in triplicate: original for consignee, duplicate for transporter, triplicate for consignor.

Who uses the delivery challan

Garment unit sending fabric for job work

A Surat textile unit sends grey fabric to a dyeing house on a job-work challan and receives it back on the job worker's challan, with no invoice on either leg.

Furniture showroom delivering on approval

Sofas go to the customer's home on an approval challan; once accepted, the challan converts to a GST invoice.

Transporter in Ludhiana

Consignors hand over goods with a challan showing vehicle and LR numbers; the transporter keeps the duplicate copy for checkposts.

Branch transfer within one state

Moving stock from a Pune warehouse to a Nashik store under the same GSTIN uses a challan, not an invoice.

Delivery Challan: frequently asked questions

Can I issue a delivery challan without an invoice?: Yes, in the situations Rule 55 allows: job work, goods sent on approval or return basis, supply of liquid gas where quantity is unknown at dispatch, goods sent in multiple lots against one invoice, and transfers within the same GSTIN. For a normal sale the tax invoice must be issued at or before dispatch, but a challan can be issued with it for the transporter.
Is an e-way bill required with a delivery challan?: An e-way bill is required for movement of goods worth more than ₹50,000, whether the movement is under an invoice or a challan, including job work sent inter-state regardless of value. Generate it on the e-way bill portal and enter the number in the challan's E-way bill number field so it prints on the document.
Should GST be shown on a delivery challan?: Only when the movement is a supply and tax is applicable, such as goods sent in lots against a single invoice. For job work, goods on approval or intra-GSTIN transfers, no tax is charged, so set the GST rate to zero; the taxable value must still be shown. Tax is finally charged on the invoice issued when the sale happens.
What is the time limit for job work goods to return?: Under Section 143 of the CGST Act, inputs sent for job work must return within 1 year and capital goods within 3 years, otherwise the original dispatch is treated as a supply from that date and GST becomes payable. Keep the challan numbers handy; they are reported in Form ITC-04.
Does a delivery challan reduce my stock?: Yes. In VyaparKit both invoices and delivery challans reduce the stock of saved items, since the goods have physically left your premises. When you later convert the challan to an invoice, stock is not reduced a second time. Purchase bills and goods receipts add stock back.
What happens when I convert a challan into an invoice?: Open the challan and pick GST Invoice or Tax Invoice under Create from this challan. A new invoice is created with the same consignee, items, quantities and rates, taking the next number in your invoice series, and it stays linked to the challan. The invoice posts to the customer ledger; the challan does not.

Guides from the blog

Invoicing24 Jul 2026 13 min

Delivery challan under GST: when to use one instead of a tax invoice

Rule 55 cases (job work, approval, lots, art works, liquid gas), challan contents and copies, e-way bill rules, conversion to invoice and job work time limits.

Read the guide →