Material Delivery Challan Format
Delivery challan is a formal document sent to the customers along with the delivery of goods. Vyapar helps you professionally create a material delivery challan format. Using the free format, you save a lot of time required in creating a delivery challan.
What Is A Material Delivery Challan?
A delivery challan is a legal document issued during the transportation of goods from one place to another. The transportation of goods does not result in the sale or supply of goods. No Goods and Services Tax (GST) is applicable on the delivery challan.
A delivery challan is also called a delivery slip or dispatch challan. A material delivery challan is attached along with the shipment of goods for customers. The customer acknowledges the receipt of goods by accepting the legal document and the delivery challan.
A delivery challan for materials contains all the required details of the transported goods. It includes the buyer’s name and address, details of the shipped items, and delivery address. It also includes the quantity of the products, item code, and supplier’s name and address.
Why Do You Need A Delivery Challan?
Section 55(1) of the CGST Rules specifies the situations when a supplier can issue a delivery challan. The instances wherein you can issue delivery challans are below:-
1. You need a delivery challan for materials when the goods are transported before they can get supplied. For instance, when the goods are transported from one warehouse to another.
2. A material delivery challan format is required when the goods are transported in incomplete or semi-assembled parts.
3. When the goods are transported for job work. In such instances, a delivery challan is required under the following situations:-
- When the principal sends goods to a job worker.
- If one job worker sends goods to another job worker.
- When the job worker is sending the goods back to the principal.
4. When the quantity of the goods supplied at the time of dispatch is unknown. For instance, the quantity of the liquid gas being removed from the supplier’s warehouse is unknown.
Other Cases Where a Material Delivery Challan Is Issued?
There are other cases as well, wherein issuing a material delivery challan is acceptable. The cases are mentioned below:-
When the goods are transported abroad for exhibitions or promotions. The transportation of goods is considered to be a supply or export. Hence, a delivery challan can be issued.
When the transportation of goods takes place on an approval basis. Here, the goods get transported on a return or sale basis inter-state or intra-state. However, they are withdrawn before the sale happens, so a challan is required.
A material delivery challan is required when a work of art is transported to galleries.
When an e-way bill is not required, a delivery challan is issued. Also, as per Rule 55A of the CGST Rules, a challan is to be issued when a tax invoice is not needed.
When the goods are transported in multiple shipments, a delivery challan is issued. A challan is given when the goods are transported in various shipments in a partial or fully assembled state.
You need a delivery challan for material buyers when creating a tax invoice is not possible at the time of delivery of goods. When the goods are meant for sale or supply and a tax invoice cannot be issued. In such cases, a delivery challan has to be issued.
Which Businesses Require Delivery Challan?
As mentioned earlier, a delivery challan is a legal document. It is an important document required during the transportation of goods that are not meant for sale. Some businesses that need issuing these delivery challans under GST are as follows:-
- Construction businesses as they require raw materials.
- Manufacturer of goods.
- Trading businesses.
- Transport businesses.
- Wholesalers of goods.
- Suppliers of goods.
- Business owners that have several warehouses.
What Are The Key Components Of A Delivery Challan?
A delivery challan consists of several components. The main components that are included in a delivery challan format are as follows:-
- The date on which the delivery challan is created along with its number.
- A detailed description of the goods to be delivered.
- Consignor’s name, address, and GSTIN number.
- HSN code of the goods transported.
- The taxable amount of the supplied goods.
- Consignee’s name, address, GSTIN number, or Unique Identity Number (UIN).
- The exact number of goods that are being delivered.
- The location of supply in cases of interstate transportation of goods.
- The applicable GST rate is broken down into IGST, SGST, CGST, and GST Cess.
- Signature of the supplier or its registered authority.
Difference between a Delivery Challan and an Invoice
According to Section 31 of the CGST Act, 2017, when a supplier transports goods that are taxable from one place to another, a tax invoice is issued.
However, in some cases, the transportation of goods does not result in the sale of goods. In such cases, instead of issuing a tax invoice, a material delivery challan is issued.
The major differences between a challan and a tax invoice are as follows:-
- A material delivery challan is a formal document issued for the sole purpose of transporting goods. On the contrary, a tax invoice is issued when there is a supply of goods. A tax invoice is also issued when then the payment has been received by the supplier.
- A delivery challan may show the value of the product worth sometimes. Whereas a tax invoice always indicates the true value of a specific product.
- Delivery challan has no legal ownership. It only means that the customer has acknowledged the goods received. On the other hand, an invoice is a legal document proof with regards to the ownership of goods.
- A tax invoice portrays the actual worth of the products. On the contrary, a delivery challan does not show the true value of a product. It does not indicate the tax payable
How to Create a Material Delivery Challan Using the Vyapar App?
Before you create a material delivery challan on the app, you need to know a thing about it. To make the delivery challan, the first thing that you need to do is open Vyapar.
Go to the “settings” options on the left menu and click on “general settings.” There you will find the “delivery challan” option. Click on it to add the option to your transaction section.
By doing this, you have enabled the delivery challan option on your transaction section. This will help you create a material delivery challan.
Follow the given steps to create a delivery challan using the Vyapar app:-
- Click on the “add more” option visible on the homepage.
- You will find the “delivery challan” option there. Just click on it.
- Or, you can go to the “sale” option on the left menu and tap on the “delivery challan” option.
- When the delivery challan tab opens, you will fill out the necessary details.
- You will enter the name of the party along with the shipping address.
- On the right-hand side, you will fill out the additional details like date, challan number, etc.
- Next, you will enter all the names of the goods.
- Fill out other details as well, such as description, delivery date, transport name, etc.
- After filling in all the necessary information, save the delivery challan created.
Finally, the delivery challan will be generated. You can print it out or download it in PDF format. You can even mail, SMS, or WhatsApp to the respective person.
Benefits of Using the Vyapar App for Delivery Challan Requirements
The benefits of using the Vyapar App for material delivery challan format requirements are as follows:-
The Vyapar app has advanced software that allows business owners to track orders. After the purchase or sale orders are made, it helps to set up a due date for tracking the orders easily.
You get to save a lot of time using the tracking feature on the Vyapar app. You can attach the tax invoice and order to track the payment status. It increases customer satisfaction as it is very helpful in tracking orders timely.
The business owners can also attach the delivery challan and the order to track payment status. You can ensure that the goods have reached customers safely by tracking delivery challans seamlessly.
The free GST billing software helps businesses automate their billing requirements. Business owners can efficiently perform several business-related tasks. It includes creating GST return filing, delivery challans, inventory management, billing, and invoicing.
The Vyapar app also allows businesses to customise the fields of formats as per their requirements. The free billing software generates GST invoices within minutes for the clients.
With the help of the exquisite features, it is easier to track all the due dates in the challans and invoices. Vyapar app allows business owners to quickly identify any overdue payments.
Build A Positive Brand Image
Providing challans, quotes, invoices, and estimates professionally builds a positive brand image. A professionally created delivery challan can stand out among competitors and portray you as a professional supplier.
You get to include the business logo, font, style, and brand colours in your delivery challan. It will help you portray your brand’s identity professionally.
A customer is more likely to buy from a supplier using professional material delivery challan formats than plain challan. Thus, using the material delivery challan format of the Vyapar app is of great benefit.
Valuable Features of the Vyapar App
The valuable features of the Vyapar App are as follows:-
Automatic Data Backup
The Vyapar billing and accounting software is 100% safe and secure. Users can easily store and back up their data accurately. The user-friendly app lets you keep your data backed up through external or local options.
It not only helps you in backing up the data but also ensures you recover your data quickly. The data on the software is encrypted with added security. The hassle-free backup software also comes with the auto-backup feature.
Vyapar has encrypted software that allows it to keep the data accessible to the owner. It is done only to enhance security and safety further. Using the billing app, you can create data backups per your requirement. It ensures the security of your data using several backup options.
Vyapar has 40+ business reports available for its users. Users can create business reports using the free professional billing software for all business needs. Vyapar software comes with professional delivery challans.
When you use Vyapar, it increases the operational efficiency of your business. The business reports can easily be exported in PDF or Excel format. Export of delivery challan format in excel can also be done.
The users can instantly analyse and look at the data using the free GST invoice and accounting software. Users also get to create graphical business reports for tracking business orders. The Vyapar software accurately analyses business details, invoices, challans, accounts, etc.
You can set up your online store within a few hours of using the Vyapar billing and accounting software. The Vyapar GST billing software does not levy any charge on using online store features. Vyapar ensures that you can take your business on the online platform.
Using the Vyapar app, you can list all the products and services to sell to customers online. Vyapar also helps you showcase a catalogue of all the products and services to boost your sales online.
The online store feature in the GST billing and accounting app helps you reduce the waiting time at the store counter.
Send Estimates and Quotations
The Vyapar billing and accounting software provide a professional image with quick quotes, estimates, and challans. The Vyapar app has a feature that automates most of the accounting processes.
The generated quotes, challans, invoices, and estimates are error-free. In addition to all the features, you can also set up a due date for tracking invoices.
Using the free billing and accounting software, you can easily create important documents. It includes quotations, delivery challans, estimates, and accurate GST invoices software. The inbuilt features in the GST billing and accounting app also allow you to send quotes, challans, and estimates to customers anytime.
Download Free Material Delivery Challan Format
What Do Customers Have To Say About The Material Delivery Challan Format?
"Professional delivery challan format."
Vyapar accounting and billing software have a professionally built delivery challan format. Its professional format builds a positive image of our brand.
Using delivery challan made my work easier at the same time. Further, it helps me work more efficiently. The software is also very easy to use.
- Rashi Jain
The Vyapar material delivery challan generator app is ideal for users and small businesses. The software has a user-friendly interface.
Vyapar makes the process of creating material delivery challan easier. The dashboard has extensive features which are easy to use and can also be customised.
- Mridul Agarwal
"Efficient for small businesses."
It is efficient for small business owners as it looks into the accounting aspect of the business. It saves a lot of time, allowing focus more on the work. The delivery challan created a good brand image of the company. It is the best accounting and billing software.
- Sagnik Das
Frequently Asked Questions
What Is A Material Delivery Challan Format ?
A material delivery challan is a legal format document. It is made for situations when goods are transferred from one place to another.
It is sent along with the shipment of goods, which may/may not result in sales. For example, transfer of goods from the head department office to various branches.
Can We Send Material On Delivery Challan?
A delivery challan is a legal document. It is required with the transportation of goods from one place to another.
In this situation, under the GST law, the transaction is not treated as a supply. It is issued only when you send goods. The GST does not apply to such transactions.
What Is The Basic Rule Of Issuing A Delivery Challan?
The basic rule of Issuance of a delivery challan is governed under Rule 55 (2) of CGST Rules. According to the CGST Rules, a delivery challan should be issued in a triplicate copy.
The original delivery challan is only meant for the consignee (recipient of goods). The duplicate copy of the delivery challan is for the transporter of goods. The triplicate copy of the delivery challan is meant for the consignor (supplier of goods).
Is Delivery Challan Mandatory?
A delivery challan is applicable only in the sale or supply of goods. In certain cases, the goods are supplied based on the delivery challan.
These goods are transported and supplied for the sole purpose of supplying or selling that good. Then, the supplier is needed to issue a tax invoice after the delivery of those goods.
Can We Use A Delivery Challan Instead Of An E-Way Bill?
In some cases, an e-way bill cannot be issued while transporting goods. In these cases, a delivery challan is issued and used instead.