Delivery Challan Format PDF
Vyapar helps create delivery challan using professional PDF formats. These delivery challans are produced in a format that makes it seamless for sellers to track orders. This app is a boon for businesses in managing their delivery consignments.
What Is A Delivery Challan?
A delivery challan is a document that contains all the essential details about the items being delivered. The items' description, quantity, conditions, etc. are mentioned as the details in the delivery challan. It simplifies the overall process for different businesses.
They can also access the recipient details, delivery time, location, and time through delivery challan format PDF. All of this can be achieved through a single app. An app that includes all these features and can surely make your business needs easily achievable.
In a business, it is vital to keep track of all the items that are meant for or not for sale. These also include the things that have been delivered or the ones still in a transaction. On the practical side, it is tough for someone to keep track of all these items in one go.
Although, many businessmen create invoices manually for each transaction. But, this is a time taking process that might slow down the sales process. This is where a delivery challan comes into play.
Types of businesses that need to use Delivery Challan format PDF for themselves:
As mentioned above, a delivery challan is crucial in keeping track of items. The businesses that need these Challans for this purpose are :
- Companies are involved in the trading of goods.
- In cases where a single company transports items across various warehouses.
- A supplier of goods and commodities.
- A wholesaler.
- A manufacturer.
Why Do You Need A Delivery Challan?
In the case of delivery challan, the rules of CGST [Section 55(1)] are applied. According to this section, a businessman can issue a delivery challan instead of a regular invoice in certain circumstances. The circumstances are as mentioned below :
- In a situation where there is no clarity about the number of goods transported.
- There are cases when items need to be transported between members of an organization at different places.
For example: An employee sends goods to another employee of the same organization in another office. In this case, a delivery challan must be used to avoid confusion.
- In some cases, the goods are transported before actually being transported. That means they are transported to a warehouse near the delivery location. In such a case, a delivery challan format PDF comes in handy.
- In most cases, the goods are transported inter or intra-state on a to-be-sold or return basis. In this case, the goods are removed before the actual supply happens. So, a delivery challan is needed in this case.
- When artistic works are transported to galleries, exhibitions, or an auction, such transportation can be done using delivery challans.
- Transportation outside the country ( for exhibitions and promotional intent only) requires delivery challan. A new circular was issued on the 18th of July 2019 named CBIC circular no. 108/27/2019 for this matter. According to this circular, goods and items sent outside the country for exhibition or promotional activities cannot be treated as suitable for supply or export.
- There are cases where goods are transported through multiple modes of shipment. These might include shipments in which the goods are partially or not assembled. In such cases, the supplier is directed to first send an invoice for the first consignment. He should issue a new delivery challan for every other consignment.
- There are cases in which the goods being transported are meant to be sold or supplied, but the supplier cannot issue a tax invoice. As per the solution mentioned in Rule 55(4) of the CGST and SGST rules 2017, the supplier can issue a delivery challan. But the tax invoice will be issued once the goods are delivered.
- Where there is no requirement for an e-way bill, a delivery challan is used. A rule is used for cases where a tax invoice or bill of supply is not required. As Rule 55A of the CGST Rules mentions, the goods coming under the said category should then be delivered with a delivery challan.
The different types of delivery challans
There are three types of delivery challans prepared during the process of transportation. This record of all the delivery challans is kept by the department of accounts in a business. These three types of copies of the delivery challans are:
- Marked as original copy: This is the original copy of the delivery challan. It is made for the consignee.
- Marked as duplicate copy: This is the duplicated copy of the delivery challan. It is made for the transporter.
- Marked as triplicate copy: This is the triplicate copy of the delivery challan. It is made for the consignor.
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.
The details of a delivery challan format PDF
Also known as "DC," delivery challans have their serial numbers. This helps them to be maintained in a sequence throughout a financial year.
Delivery challan document requires a signature done physically. No other forms of signature, i.e., "auto signature" or "computer generated signature," are applicable in this case.
Given below are the details included in a delivery challan format PDF:
The date and a serial number of a delivery challan:
The date of the creation of the delivery challan and its serial number should be numbered clearly and in a serial order.
The name of the company and address and GSTIN number:
Every delivery challan must contain the name and the address of the consignor. It helps track the consignments and keep records.
The name, address and GSTIN number of the consignee
All delivery challans must contain the consignee's name, address and GSTIN number/UIN number. In some cases where the consignee is unregistered, the place of supply should be mentioned without fail.
The HSN code of every good that is transported:
The HSN code or Harmonized System of Nomenclature is a six-digit code. The job of this code is to classify different goods. It makes it easier for various manufacturers, suppliers, and others to differentiate goods.
The description of the goods being transported:
It is crucial to mention each item's description and the HSN code in a tabular form. This table is also known as the items table.
The quantity of the goods:
It is essential to mention the provisional or exact quantity of the goods that are being transported. The amount should be mentioned in the delivery challan alongside a proper Unit of Measurement (UOM).
The taxable value of the goods:
The total taxable value applicable to the goods being transported must be mentioned along with the tax rates in the delivery challan.
Other applicable rates and prices:
The rate of each item, along with the applicable GST rates, should be mentioned in the delivery challan. The GSTIN rate must be broken down into IGST, CGST, SGST, and cess and then said in the document. The final price should be mentioned per item with their quantity.
Location of supply:
The location where the goods are to be supplied must be mentioned in the document if it is inter-state transportation.
As mentioned in the beginning, a delivery challan needs to have the physical signature of the supplier or any other authority equal to that.
The benefits of choosing a Delivery challan format PDF
Here are the top 5 ways in which PDF delivery challan help businesses:
#1 Helps with delivery confirmation:
A delivery challan is always sent along with the goods with a mention of the details. This feature helps the recipient to know about the goods that have been delivered.
The delivery person or the recipient can cross-check the details mentioned in the delivery challan with the goods that have been delivered. Later, a signed copy of the delivery challan by the consignee is kept as proof of delivery.
#2 Helps with Frequent orders
In many cases, a customer or several customers may order items and goods that require same-day delivery. Delivery challans help the consigner supply these items within time without any mistakes.
Further, setting up a delivery challan format PDF to meet your unique business requirements can help in the long term. You can use the forms whenever you wish to create a new challan for consignments.
#3 Helps in Managing bills
Today, customers worldwide are vigilant enough to ask for a bill every time they buy something. That is why a consigner must be ready for such cases. Using delivery challan formats PDF in the Vyapar app, you can use the challan as an invoice to collect payments.
A consumer may ask for an invoice for every item supplied. Here a consigner can easily send a delivery challan with every item delivered. This delivery challan can present all the data required as proof of purchase and act as an invoice for the customer.
#4 Helps Save time and effort
Using a delivery challan format helps in the overall tracking and management of orders. The challan can help track the consignment during transit and identify if it gets misplaced. It ensures that no time is wasted and easy recovery is possible.
In some cases, the items get returned due to many reasons. Sometimes they are sent back for replacement. So, making a delivery challan that can be used as an invoice once the consignment is delivered to the customer is better.
#5 Helps avoid item loss during transit
In cases where the items are transported from one warehouse to the other, a delivery challan helps track each item. It, in turn, helps ensure safe transportation of goods. Thus, ensuring that no goods are lost in transit.
Using delivery challan format PDF, you can make custom challans. It will have your business logo and all the required details to help transit staff identify it in case of misplacement. So, losing items will become problematic.
Difference between Invoice and Delivery Challan
There is a thin line between a regular invoice and a delivery challan. People become seasoned in business, sometimes interchanging these terms, but these are some intricacies that can be missed deliberately. So, the main differences are as given below.
A primary example is that a delivery challan is used when goods are transported, but it might or might not result in a sale. In contrast, an invoice represents a sale. An invoice is a document that is made with the intent of proving ownership of goods or services. However, the delivery challan document is presented to a consumer as legal proof of ownership of the goods delivered.
An invoice is also sent in cases where multiple shipments are transported. In such a case, the supplier first provides an invoice for the primary consignment. He can then send a delivery challan for the items being delivered after that, given that the delivery challans contain a reference to the invoice.
A delivery challan can be acknowledged as an essential document for delivery purposes. The purpose of a delivery challan document is to provide an acknowledgement for the delivery and track consignment during transit. However, unless the delivery challan is used as an invoice, this document talks nothing about the ownership or the rights adjoined.
In some instances, an invoice can be converged with a delivery challan. It helps make the entire process seamless. For example, the delivery challan can have all the details required for invoicing a customer.
Once the consignment reaches the customer, it can be used as an invoice. Further, the customer can make payments using the payment methods provided in the challan.
Additional Benefits of using Vyapar application for delivery challan format PDF
Using the best delivery challan maker app helps manage all your billing requirements. You can use the delivery challan format PDF to add all details during transit of consignment. Once it reaches your customer, you can collect payments from the challan using QR codes.
With the Vyapar free inventory management software, you can easily organize your delivery challans and other bills. You can access the details through your smartphone or desktop device.
Further, you can create business reports using the data in the bills created using the app. These reports can help you plan a business strategy as they will help you better understand your sales.
Record transactions seamlessly:
With accounting software Vyapar, you can easily record all your transactions, revenues, and expenses while seamlessly keeping track of multiple parties. The data collected can help your business in numerous ways.
You can use the details to keep track of inventory levels and place orders with suppliers before you run out of stock. Further, you can understand what your customers buy more and create a marketing strategy. It can help you bring more sales and help you save inventory space.
Using a delivery challan format using Vyapar can help you save the time and effort required to maintain data. After all, all the details are already backed up safely using the Vyapar app. You can set up automated backups in Google Drive for seamless recovery of data.
Vyapar delivery challan maker app makes it seamless for businesses to keep track of all the details of shipments. It makes the logistics seamless and helps ensure that items are not lost during transit.
While you can easily access the Vyapar app on many devices, you can collaborate in real-time with your employees and create challans together. You can download and print delivery challans and attach them to consignments seamlessly.
Using the delivery challan format PDF, you can make a custom format and use it within minutes whenever you want to make a challan. A delivery challan is best suited for transport-related businesses or when transport is involved.
Frequently Asked Questions
Is delivery challan mandatory under GST?
Yes, a delivery challan is mandatory under GST. It helps ensure that the sale of goods abides by the tax laws.
The invoice is issued at the time of delivery. And using GST delivery challan PDF formats, you can use the challan as an invoice. It enables payment convenience for the customers.
When can the delivery challan be issued?
A delivery challan is issued during the supply of goods or services that does not amount to immediate sale. The primary intent of this document is to record the transportation of goods. The delivery of goods may or may not result in a sale, as in some cases, it is returned by the buyer.
What is the delivery challan in e way bill?
A delivery challan is a crucial accounting document that records the transportation of goods. It also works as an e-way bill which the consigner issues.
Can we send material on delivery challan?
Yes, a delivery challan can be issued on the transportation of materials. The delivery challan will mention the quantity and other details of the same.
Why is the delivery challan issued?
A delivery challan is issued by the consignee while delivering goods to the consignee. It helps track the consignment during transit to ensure safe delivery. Further, the delivery challan can have all the billing details. It enables it to act as an invoice and collect payments once it reaches the customer.