Simple Delivery Challan Format
You can manage your entire business and issue delivery challans seamlessly with Vyapar. You can create a simple delivery challan format effortlessly using our app. Thousands of small businesses in India rely on Vyapar.
What is a simple delivery challan format?
A tax invoice must be issued if a registered supplier transports taxable goods from one location to another, according to Section 31 of the CGST Act of 2017. This tax invoice includes the number of goods, description, value, GST charged, and other information.
However, because transportation of goods does not always result in a sale or supply, a tax invoice is not always issued. Instead, a supplier issues a delivery challan in such cases.
Suppliers create a delivery challan when transporting goods not intended for immediate sale, and no GST is applicable on such supply. A delivery challan is called a dispatch challan or a delivery slip containing information about the goods in transit.
When do you need to issue a Delivery Challan?
Section 55(1) of the CGST Act states that a supplier can issue a delivery challan in the following instances:
1. When the quantity of liquid gas in shipment is unknown.
2. The delivery challan is required when the seller transports products for job work in any of the following situations:
- Job worker receives goods from the principal
- Job worker sends goods to another job worker
- When a Job worker returns goods to the principal
- Products are transferred from one warehouse to another warehouse or a factory before they are ready for distribution.
These are the cases where issuing a delivery challan for goods transported is acceptable:
Transport of goods on an approval basis
A challan is necessary if the goods are transferred inter or intra-state for sale or return and removed before the supply or export occurs.
Transport of artwork to the gallery
You can use these challans to transport works of art to galleries for exhibition purposes.
Transporting goods to another country for promotion or exhibition
CBIC Circular No. 108/27/2019-GST, issued on July 18, 2019, states that if a seller transports goods outside of India for display or promotional purposes, such transportation cannot be treated as 'supply' or 'export.' As a result, such transportation should be carried out per this challan.
Movement of goods in several shipments
The supplier must issue a tax invoice when transporting the first consignment if goods are transported in a partially or wholly unassembled state using different shipment modes. Then, a supplier should issue a challan with the invoice reference for each subsequent consignment.
Failure to issue a tax invoice at the time of removal of the goods
According to Rule 55(4) of the CGST and SGST Rules, 2017, if the goods transported are intended for sale or supply, but the tax invoice cannot be issued, the supplier may issue a delivery challan and transport the goods. After the goods are delivered, the tax invoice will be issued.
When an e-way bill isn't required
According to Rule 55A of the CGST Rules, which went into effect on January 23, 2018, if the e-way bill is not required, and if the tax invoice or Bill of Supply is not required, you can transport the goods using this challan.
Main Components of a Delivery Challan
The following are the main components of a delivery challan:
- Date and number of the challan
- The consignor's name, address, and GSTIN
- The consignee's name, address, GSTIN number, or UIN number
- You should mention the place of supply if the consignee is unregistered
- HSN/SAC code of goods
- Good's Description
- The exact or provisional amount of goods
- The taxable amount of supply
- Applicable GST rate
- If the transportation is between two states, the location of the goods' supply
- Supplier or designated authority's sign
Benefits of issuing a simple delivery challan
A delivery challan is a dispatch challan used when a seller transfers goods before the sale, such as for job work, sale, or return. It includes information about the delivered goods, such as the quantity, description, delivery location and time, name and address of the consignee, and so on.
Some of the benefits of a delivery challan are as follows:
- Each delivery challan carries all the information and goes with the goods. It helps recipients to cross-check the delivered goods with the actual order. The customer's acknowledged copy of the delivery challan provides proof of delivery.
- When a seller ships goods on an approval basis, it's helpful if they don't prepare an invoice as the goods are sent to the customer's place for sale or return. In those cases, a delivery challan is a document issued during supply.
- Delivery challan is useful when an e-way bill is not required and a tax invoice or a bill of supply is not prepared.
- In some cases, goods are transported in multiple shipments in a semi-knocked down or completely knocked down condition. In such cases, the supplier issues an invoice before the first consignment and then uses a delivery challan with the original invoice details for each subsequent consignment.
- Transportation of goods outside India for exhibition or export promotion is not supply or export. A Letter of Undertaking (LUT) or bond is not required because there is no export. You can send such items with a delivery challan.
How do you make a delivery challan in Vyapar?
Before making the delivery challan, you must know the basic settings.
- Open the Vyapar app.
- Go to the left menu, and click on settings.
- In the general setting section, you will see the option of Delivery Challan.
- You need to turn on that option if you want to make a delivery challan.
- Doing so will add the delivery challan to your transaction section.
- You can click on the info icon to know more about it.
When you enable the option of delivery challan, two other options will appear on your screen.
1. Goods returned on Simple Delivery Challan:
This option is required when there are chances that the other party will return the goods you have sent, and we advise always keeping that option on.
2. Print Amount on Delivery Challan:
If you want to display the price of goods on the challan, you must enable the option.
Further, if you want additional details in the challan, go to the transaction section and turn on the required fields.
You also need the party's shipping address in the delivery challan.
Go to the party section and ensure that the option of party shipping address is on.
Now here's how to make a delivery challan:
- On the homepage, click on the plus (+) sign and then the delivery challan.
- You can also go to the sale section from the left menu and choose delivery challan.
- On the top, mention the date and challan number.
- Enter the party's name and items.
- Fill in all the necessary details and save it.
- Now your delivery challan is ready.
- You can print it or keep it in PDF form.
- You can also share it with concerned parties through SMS, email, or WhatsApp.
As per rule 55(2) of the CGST Act, you must make three copies of the delivery challan:
Original - For the Buyer
Duplicate - For the Transporter
Triplicate - For the Seller
Difference between Tax Invoice and Delivery Challan:
A tax invoice is proof of ownership and comes with legal responsibilities. In contrast, delivery challan doesn't prove ownership and has no legal obligations.
Tax invoice displays the actual value of goods sold, while delivery challan presents no legal price. A delivery challan shows that a customer has acknowledged the receipt of goods.
A tax invoice includes the applicable taxes. A delivery challan may depict the rate of a particular product but not the taxes.
The seller issues a tax invoice in the event of a sale. A delivery challan is issued to send shipments of goods that may or may not result in a sale.
A tax invoice is applicable for goods and services, while a delivery challan is only applicable in the case of goods.
Benefits of using the Simple Delivery Challan Format by Vyapar:
Using various features in the simple delivery challan maker app, you do not have to halt your business operations because of poor internet connectivity. You can accept payments in your retail business by using offline billing software.
You can collect payments using cash and eWallets, which do not require an active internet connection, making them ideal for India's remote locations. Additionally, the Vyapar app allows you to generate invoices for your customers without staying online.
When you connect your database to the internet, our business accounting software automatically validates and updates your transactions. You can generate bills for your customers as soon as they make a purchase using our GST accounting software.
Manage cash flow seamlessly.
Users can record transactions and track payments using our billing and accounting software. The app helps automate management and prevent mistakes in accounting. Users can make timely decisions using the cash flow data.
Investing in this billing software allows you to manage your business cash flow effortlessly. This all-in-one software makes managing cash transactions possible and provides a better option for keeping financial records.
Our free GST invoicing software helps create a real-time cash book. Also, it can help maintain business cash flow, and cash management with this app is relatively easy.
Track your business status
Check your company's cash flow, inventory status, open orders, and payment updates all in one place. Vyapar's business dashboard streamlines the entire management process.
You can manage your business on the go with our software and invoicing tools. With this free software, accounting in your business becomes very simple and efficient. You can get complete updates on your business at any time.
The GST billing app aids in the analysis of your overall business operations. You can change your business strategy at any time using the observations. It ensures that your business runs smoothly.
Provide multiple payment options
You can create invoices with multiple payment options using the Vyapar invoicing app. Your customers can pay you using conventional methods, such as bank transfers (NEFT, RTGS, IMPS). You can accept cash, checks, debit cards, and credit cards, and it is preferable if you can offer all payment options to customers.
You can include a QR code within the invoice as one of the payment options to assist your users in sending a payment to the UPI id attached. You can also enter your bank account information into the app, which helps ensure that your customers pay you on time.
It will enable you to provide better credit to your customers and encourage them to shop with you more frequently. It is an excellent way to gain customer trust because they will prefer you over competitors who do not provide multiple options.
Other valuable features of Vyapar App:
Create Delivery Challans
You can create delivery challans using the Vyapar app and attach them with your consignment. It acknowledges delivery and that the receiver has accepted the receipt.
Vyapar allows you to track your delivery challans. So you can ensure whether your goods have reached their destination.
You can know where your consignment is and provide directions if it gets misplaced. It ensures that consignments reach customers safely.
A delivery challan contains the shipment details, and you can include the terms and conditions of the order in it. This way, it helps in avoiding disputes and makes the process smooth.
The delivery challans can be converted into invoices when the shipment reaches the customer. You can provide all offline and online payment options for your customers' convenience.
Send Estimate & Quotations
You can easily create valuable documents with our software. It includes accurate GST invoices, quotations, and estimates.
Vyapar’s simple delivery challan generator offers professional formats. Users can automate most processes using free challan formats to save time and effort. The GST billing app's built-in features allow you to send quotes to customers anytime via WhatsApp, email, SMS, or printing.
It eliminates errors in quotes and estimates. You can also set a due date for tracking invoices seamlessly. You can also convert your estimates and quotations into sales invoices anytime.
Billing is as simple as a few clicks with the Vyapar software. Vyapar's free billing software provides trading businesses with a comprehensive solution for saving time and receiving instant quotes.
The billing app adds professionalism to your valued customers to entice them to return. Choosing advanced GST billing software is one of the best investments you can make for your company.
Receivables and Payable
Vyapar enables users to save all transaction details and track their company's cash flow in real-time. The software lets you track the party's receivables and payables.
You now have a better way to secure your transaction data. Using the business dashboard in the app, you can track the money you 'have to receive' and the money you 'have to pay.'
You can quickly figure out who didn't repay you. You can set up payment reminders to ensure that these customers pay their bills promptly. The software also allows you to send payment reminders to any party via WhatsApp, SMS, or email.
You can also save time by using the bulk payment reminder feature to send payment reminders to all of your customers at once. Calculations are performed automatically by the GST Billing and Invoicing software.
Because it indicates an early sign of cash flow issues, using Vyapar's cash flow management system allows you to avoid taking on too much debt and revisit your business plan.
Data safety and security
Vyapar delivery challan generator app is entirely secure, allowing you to create local or online Google Drive backups regularly. Furthermore, you have 24-hour access to your company's financial data across multiple devices.
The app has an encryption system that only allows the owner to access the data for added security. Vyapar will not save or share authentication data from users for future use.
The delivery challan maker app by Vyapar makes it simple to manage your business. Vyapar's comprehensive dashboard lets you analyze your business activities in real time.
Your company's data is inaccessible to any team member or third party, ensuring its long-term security. Vyapar has an "auto-backup" feature that allows you to pick up where you left off.
An automatic backup is created every day when you use the auto-backup mode. You can create data backups based on your requirements to help ensure the security of your data.
Plan your inventory space
Inventory management is critical for businesses that sell a wide range of products. You can keep track of available items in your store using our GST invoicing software.
The features of Vyapar can help you detect theft in your store. You can check your security cameras when you notice that some items are missing.
A professional inventory management tool can help you manage items in your warehouse more effectively. It can help you organize your stock space per the customer's demands.
Using the best billing software is excellent as you can use the data to create sales reports, and you can understand how much inventory is ideally suitable based on the sales from last year and current trends.
Periodic checks can aid in detecting inventory mismatches when using the GST accounting software's inventory management system. If your inventory runs low, you can set up alerts to help you place an order before you run out of essentials.
Download Free Simple Delivery Challan Format
Frequently Asked Questions
Is delivery challan under GST mandatory?
A delivery challan is only applicable in the case of goods. Suppose the seller supplies goods based on a delivery challan and is transported solely for supply. Following the delivery of goods, the supplier must issue a tax invoice.
Can we use a delivery challan instead of an e-way bill?
Sometimes, a seller issues a delivery challan when they cannot issue an e-way while transporting goods.
Can you use a delivery challan while transporting items between different states?
Yes. You can use a delivery challan during interstate transportation, and the challan should contain the delivery location details.
Does the delivery challan include transportation information?
Yes, the challan provides information about the mode of transportation and the vehicle.
Who prepares delivery challan?
A seller issues a delivery challan to the buyer.