Delivery Challan
A document prescribed under GST rules for transporting goods without a sale — used for branch transfers, job work, returnable assets, and sample dispatches.
Full definition
A delivery challan is a specific document format prescribed under CGST Rule 55 for the transportation of goods in cases other than supply. It is mandatory when goods move between locations without an accompanying tax invoice — common scenarios include stock transfers between the distributor's own depots, sending goods for job work or processing, dispatching returnable assets like crates and pallets, and sending free samples.
The delivery challan must contain the consignor and consignee GSTIN, a description of goods, HSN codes, quantity, and the reason for transportation. It is issued in triplicate — original for the consignee, duplicate for the transporter, and triplicate for the consignor. For goods valued above Rs 50,000, an e-way bill must also accompany the delivery challan.
In dairy and FMCG distribution, delivery challans are generated daily for inter-branch transfers and crate movements. A crate management system auto-generates delivery challans each time empty crates move from retailer to distributor or between depots, ensuring every asset movement has a legal paper trail.
Real-world example
An Amul distributor in Rajkot sends 200 empty crates back to the district cold storage — the system auto-generates a delivery challan with crate count, depot details, and vehicle number for the transporter.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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