Know Everything About Delivery Challan and Its Importance

Know Everything About Delivery Challan and Its Importance

A delivery challan is an official document that is sent along with the shipment of goods. It has information about the items and the quantity of the shipment. When goods are being transported from one place to another, a delivery challan is necessary. The shipment may or may not be sold. Nonetheless, a delivery challan is formally transported along with the goods. An example to consider would be a supply of liquid gas.

Who makes a delivery challan?

A delivery challan is created by the seller or the deliverer of the shipment. For example, if a factory is sending goods from one godown to another, the registered person who is in charge will be the one to issue the document.

The date of the challan, the date of transportation, serial number, name, address, quantity, taxable value, GSTIN of sender and recipient, HSN code, GST amount, cess, the authorized signature of the sender, and details about the mode of transportation must be included in it.

What is the Format of Delivery Challan?

The delivery challan format has 5 sections

  • Header
  • Information about Consignee
  • Information about Transport
  • Information about Product Specifications
  • Information about Signatures and Remarks

The header section includes details such as the firm name, address, logo, GSTIN, etc. The Consignee section includes details about the recipient’s name, address, GSTIN, date, POS, challan number, etc.

The transport section includes details about the mode of transportation, dispatch date, name of the transport company, vehicle number, etc. The product details include information about the units, discount, rate, description, etc. Of the product. The signature and remarks section has notes, signatures, etc.

Here is the official accepted format of the delivery challan:

Is GST applicable for delivery challan?

This official document is not applicable for GST charges. The delivery challan is not treated as supply under GST since the transaction of the transport of the shipment is not treated as supply under GST.

When the challan is being issued, the sender is required to fill out all necessary information about the shipment required for the transportation of the goods. GST is not charged for this particular transaction. However, if the supplier does not return it within the given timeframe, they are to pay the GST on the goods.


While making a shipment of delivery items, it is extremely important to attach a delivery challan to it. A delivery challan acts as a strong document to avail a pass as mentioned in the format of a bankers verification letter. It is of paramount necessity to fill in all the correct information about the goods in the correct format. Make sure to leave the authorised signatories too. All this information is essential to maintain records of the goods being shipped. Click here for more info on banker’s verification letter.