GST Delivery Challan Format
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What is a Delivery Challan?
Delivery Challan is a document issued by the supplier in cases where the sale
of services or goods does
not occur immediately. Sometimes, when the delivery challan is issued, the payment is also not received
at the time of supply.
A delivery challan is an instrument that includes details of the delivered goods, such as the condition, description, or quantity of goods. The format usually contains other details like delivery location, recipient details, and time.
It is practically impossible for a person to remember every item they transport. To their rescue, delivery challan can be used to verify and track any shipment. With Vyapar, you can choose various delivery challan formats to ensure you get the one suitable to your business requirements.
There are mainly two types of delivery challan.
1) Outward Delivery Challan:
An outward delivery challan informs sales and provides details about the list of items that have been transported. The outward delivery challan is mainly used for job work and subcontracting purposes.
2) Inward Delivery Challan:
An inward delivery challan keeps records of all the materials received and sent for the job. It includes raw materials that are used to create final products.
What Does Sec 31 of CGST Act 2017 Say?
As per the Sec 31 of CGST Act 2017, a registered entity supplying goods must issue a tax invoice displaying the quantity, description, value of goods, the tax applied, and other such details of the supply. But, many people prefer to issue a delivery challan instead of a tax invoice.
How do you Create a GST Delivery Challan Using Vyapar?
Before creating the GST delivery challan, you must understand the basic setup listed.
- Open your Vyapar app on your Android mobile or Windows desktop.
- Click “Settings” in the left menu.
- Select “Delivery Challan” from the section for general settings.
- Enable the option to start creating a GST delivery challan.
- Now, you can include the delivery challan in your transaction section.
- To learn more, click the information icon.
When you enable the delivery challan option, two additional options will appear on your screen.
Goods Returned on Delivery Challan:
It is advisable to keep this option turned on as it is required unless there is no chance that the other party will return the goods. Keeping it on reduces additional work from your end in case they return.
Print Amount on Delivery Challan:
You must enable this option unless you do not want to include the cost of the goods on the Challan. At
times, it is required by authorities to declare the value of stuff in the package, so it is better to
keep it on in most cases.
Further, go to the transaction section and turn on the required fields if you want more information in the GST delivery challan. You must also include the receiving party’s address to make it easy for the delivery partner to identify each consignment. Keep the party shipping address checkbox selected in the party section.
How you can Create a Delivery Challan:
- Click the plus (+) sign on the homepage and select “Delivery Challan”. You can also select delivery challan by going to the sale section in the left menu.
- Mention the date and challan number at the top. Add the party’s name and items.
- List details in all the required fields and save the form.
- The GST delivery challan is now available to attach with the consignment.
- You can print it out and attach to the consignment or store it as a PDF.
- You can share the GST delivery challan with your transporter via WhatsApp, email, or SMS.
If you have already created a sale invoice and you want to create a delivery challan on that invoice then please follow the below steps,
- On the home screen, Go to the left Menu.
- Click on sale and then click on sale invoice.
- Here you will get the sale invoice history, now go to the sale invoice for which you want to generate a delivery challan.
- At right end of each invoices you will get three dot's click on three dot's and then click on "preview as Delivery challan".
- Check the delivery challan and click on "Save PDF" or "Print".
Why is Delivery Challan Used?
According to the GST law, a tax invoice must be generated when any taxable material is
taken out. The
taxable material here denotes the material produced using the company’s raw material.
One crucial criterion of such taxable material is that there should have been some input tax credit on the raw material. Hence, it is under the law that the supplier generates a tax invoice. After that, the supplier collectively pays the tax mentioned in these invoices.
However, certain situations exist when the material supplied is not meant for sale. In such cases, a tax invoice can not be generated. Below are some cases when the supplier can issue a delivery challan in place of a GST invoice.
Transport of Goods For Business Purposes
Under the law, goods for job purposes can be issued on the delivery challan. However, these goods need to be returned to the supplier after processing.
Liquid Gas Supply
If a supplier supplies liquid gas, they are allowed to transport the same on the delivery challan. However, this can be done when the quantity of liquid gas is unknown at the transportation time.
Goods Sent For Trial
Sometimes, businesses need to deliver goods to agents to try them out. Tax-paid goods can be issued on delivery challan when sent for trial purposes.
Single Order in Multiple Vechicles
There are times when the order is in bulk and needs to be transported in multiple vehicles. However, the invoice would be one. In this case, every vehicle needs to have one delivery challan with the reference of that single tax invoice.
Transportation of Materials From One Warehouse to Another
There can be multiple reasons why materials would need to be transported from one warehouse to another. In this case, the manufacturing and trading unit can do an internal transfer on the delivery challan itself.
Transportation For Non-Supply Purposes
If the supplier has proof proving that the transportation is not for sale purposes, he can issue a delivery challan for this.
Material For Exhibition
Various industries send their goods for exhibitions and hence do not mean to sell them. In such cases, they need not issue a GST tax invoice but only a delivery challan.
Transporting on an Approval Basis
A delivery challan is issued when intra-state or inter-state product transportation takes place on a return or sale basis but is drawn back before the supply takes place.
When Producing aTax Invoices is Impossible
Suppliers may issue a delivery challan in place of a tax invoice when the underlying situation makes it impossible to issue a tax invoice. It lies under rule 55(4) of SGST and CGST Rules, 2017. This rule took effect on 23rd January 2018.
When an E-WAY Bill is Not Required
Suppliers issue a delivery challan when an e-way bill is not required. In such cases, bills of supply or tax invoices were also not essential.
Difference Between Tax Invoices and Delivery Challan
- A tax invoice contains the value of a specific product
- You present the tax invoice when a sale takes place
- It acts like a legal proof for the ownership of a product
- Denotes the real worth of goods
- A delivery challan does not include any such value but sometimes includes the product's worth
- You use this particularly to move goods from one place to another while mentioning the details like amount, description, and condition of the product
- It represents how the customer has received the goods but does not present any sort of legal ownership
- Includes the value of products but excludes the tax payable
Delivery Challan Format in GST with Word, Excel, and Pdf
You can use the delivery challan format for multiple purposes. Hence, for every business that requires
transporting the goods without issuing an invoice, Vyapar presents a varied set of free delivery challan formats.
After the acknowledgement receipt, this delivery challan also acts as proof of delivery. Hence, even as per law, delivery challan is vital to perform various activities.
Using Vyapar, you can download a delivery challan format in word, pdf, excel. Doing so will allow you to prepare and download your customized delivery challan and send products for further benefits.
However, if you wish to transport taxable goods, you must prepare a GST tax invoice and present the payable GST amount. At the same time, you need not prepare a tax invoice for non-taxable goods. From the delivery challan formats section in the Vyapar app, you can download a regular delivery challan or a job work challan.
Delivery Challan Format in Excel
You can look for the delivery challan format in Excel on the Vyapar app and download it for daily use.
There are usually five sections in the Excel format for delivery challan:
- A Header
This section has information like address, first name, GSTIN, and logoM
- A Section Including All The Information About The Consignee
If we consider the transportation terminology, the consignee is referred to as the person who receives the supply of goods. This section contains the name, GSTIN, Place of Supply, address, issue date, and delivery challan number
- A Section About The Transport
This section contains the essential transport details such as the name of the transport company, dispatch date, transportation mode, and the dispatch date
- A Section Presenting All The Product Specifications
This section is for product details, including the number of goods, rate of the products, taxable value, total sale, HSN codes, discount, units of products, and the description of products delivered
- A Section Of Remarks And Signatures
This section includes Challan total (in words), notes, authorised signatory box, and business greetings.
Delivery Challan Format in Word
In many cases, the word format is helpful for businesses. Most of the information in the word delivery challan format is similar to that in the Excel format. Why? Simply because a delivery challan comprises crucial dispatch information inconsiderate of the format type.
Delivery Challan Format in Pdf
PDF delivery challan format is convenient for many business owners. You can create and share it with your clients. You need to download the challan format in pdf, make the necessary changes, and share it with the buyer and transporter.
What should be Included in a Delivery Challan Format?
A delivery challan format needs to have the listed information:
- Delivery Challan serial number
- Dispatch date
- Purchase Order date
- SAC/HSN code
- Customer information
- Products description
- Sales tax
- Any other charges, if applicable
- The total order amount
- Signature to complete the transaction’s process
Please note that you will always require three copies of the delivery challan. So, being a supplier, you must triple the document by Vyapar every time.
GST Job Work Challan
With Vyapar, you can also download the job challan under GST and use it to send your goods
for job work. This job work challan is issued under GST rules. You can add further details using the job
challan format and then use the document per your requirement. Moreover, you can also convert the
job challan format into the word form.
GST job challan format must be issued in triplicate. The duplicate and original copies are given to the job worker. Further, you can use the delivery challan format for job work purposes. It is very useful to send any goods meant for job purposes.
This job work challan format also proves helpful while maintaining a record for the time you file the GSTR 4 return. Pdf format is also available for the job work challan format. You need to open the file in excel and save the document as a pdf file.
We can now clearly understand the importance of delivery challan and how it clarifies a lot of job work proceedings. It is also essential for record-keeping. For these reasons, it is required to generate an effective delivery challan. To help challan act more efficiently, one must enter the details accurately.
Secure GST Delivery Challan With Pdf Protection
To ensure that the correct invoice is shared with the client and they do not make changes to the
invoice, you can download invoices in PDF extension. Even if you have used word, excel,
or PDF format,
all of them can be protected using the download in PDF extension.
Here are the steps:
- Step 1: On the menu bar, click on ‘File’
- Step 2: Select the “Save” option
- Step 3: Click on ‘Save As’
- Step 4: Then, under ‘Save as Type,’ choose “PDF.”
- Step 5: Lastly, click on ‘Save’
What Businesses Usually Use Delivery Challans?
- Businesses with multiple warehouses where the transportation of goods from one warehouse to another is regular and frequent
- Examples could be the textile, apparel, or clothing businesses.
- Businesses involving wholesale trading like the ones for electrical goods or electronics
- Trading and manufacturing businesses, especially the ones from the FMCG industry
- Businesses supplying goods like home furnishing or furniture industries
Download Free GST Delivery Challan Format in Excel
Frequently Asked Questions
Who Issues the Delivery Challan?
Generally, a seller issues the delivery challan to a buyer while transporting the goods. It is not also necessary for these goods to be transported as a part of the sale.
What is the Difference Between a Delivery Challan and a Delivery Note?
A delivery note is sent during the delivery as a mere document for the shipment of goods. In contrast, delivery challans are issued to impact the inventory levels since the transaction reduces the inventory stock.
What is a Non-Returnable Delivery Challan?
Sometimes, the supplier issues a non-returnable gate pass along with the order for the authorities to understand that the goods delivered can not be returned as they are delivered permanently.
What is a Returnable Challan?
Sometimes, the goods are transported from a factory and are expected to get returned. In such cases, a returnable challan is issued for such transportation.
Is it Possible to Generate an E-Way Bill Using a Delivery Challan?
Using the GST portal, any registered transporter or taxpayer can generate an e-way bill. Bill of sale, tax invoice, delivery challan, etc. are some documents that can be issued while creating an e-way bill.
Is Delivery Challan Valid Under GST Law?
As per the law, the taxpayer must raise a proper tax invoice for the taxable products, whereas he is free to issue a delivery challan for transportation of non-taxable goods.
Is an E-Way Bill Needed For Issuing Delivery Challan?
If the transported consignment’s value exceeds 50,000, one must generate an e-way bill.
Who is to Be Called Liable in Case the Goods are Not Returned within the Job Work Period?
The supplier of raw materials is held accountable to pay the valued GST on goods if they are not returned within the stated time.
Can You Use Delivery Challan While Transporting Goods to Different States?
Yes. A delivery challan can be used in this case. However, the challan must specify the location details precisely and accurately.