A delivery challan format for small shops is simpler than it sounds: it is the note that travels with goods you send out before you raise the tax invoice. You reach for it when stock moves but the sale is not yet final — goods sent for job work, goods sent on approval, or a dispatch you will bill once the customer confirms. This guide explains what a delivery challan is, the fields it must carry under GST Rule 55, when a shop should use one, and a worked example you can follow.
What a delivery challan is (and what it is not)
A delivery challan is a movement document, not a sale. It lets goods leave your shop with a proper paper trail while the tax invoice waits. Because no supply has happened yet, a delivery challan does not charge GST and does not use an invoice number — it has its own separate series.
That is the key difference from a GST tax invoice: the invoice is the taxable sale, with CGST/SGST or IGST and a consecutive invoice number; the challan is the note that goes with the goods until that invoice is raised.
When to issue a delivery challan under Rule 55
CGST Rule 55 lets goods be transported on a delivery challan instead of a tax invoice in a few situations. The commonly seen ones for a small shop are:
- Job work — you send goods to someone to work on (a tailor sends fabric to a stitching unit; a shop sends an item out for repair or finishing) and they come back.
- Goods on approval — you send goods to a customer to inspect, and the sale only happens if they keep them.
- Supply where the quantity is not known at removal — e.g. liquid gas measured on delivery.
- Movement for a reason other than an immediate supply, plus any other cases the Board notifies.
These cases come from Rule 55 of the CGST Rules — always confirm the current wording on cbic.gov.in or with your CA, since rules and thresholds change.
The delivery challan format: fields it must carry
Rule 55 lists what a delivery challan should contain. In plain terms, for a small shop:
| # | Field | Notes |
|---|---|---|
| 1 | Date & challan number | Own series (not the invoice series), up to 16 characters. |
| 2 | Consignor details | Your shop’s name, address & GSTIN. |
| 3 | Consignee details | Where the goods are going; GSTIN if the receiver is registered. |
| 4 | HSN code & description | What is being sent. |
| 5 | Quantity | How much is going. |
| 6 | Taxable value | The value of the goods (for reference — no tax is charged here). |
| 7 | Tax rate & amount | Only where the movement itself attracts tax; usually shown on the later invoice. |
| 8 | Place of supply | The receiving state. |
| 9 | Vehicle / transport details | Vehicle number (e.g. MH31AB1234) where goods go by road. |
| 10 | Signature | Of the consignor or an authorised person. |
For goods, Rule 55 describes the challan in triplicate — Original for Consignee, Duplicate for Transporter, Triplicate for Consignor. Carrying rules have eased over time, so confirm the current position on gst.gov.in or with your CA.
A worked example
Meena runs a furniture shop in Nagpur, Maharashtra (state code 27). A customer, also in Maharashtra, wants two steel almirahs delivered home to see them before paying — a classic goods on approval case.
- Meena raises a delivery challan
DC2026-27/0007: Steel almirah × 2 @ ₹4,000 = taxable value ₹8,000, vehicleMH31AB1234. No GST is charged — this is a movement, not a sale yet. - The customer confirms. Meena opens the challan and converts it to a tax invoice
INV2026-27/0058with the same items. - As an intra-state sale, the 18% splits into CGST ₹720 + SGST ₹720 (illustrative rate — confirm the current rate on cbic.gov.in):
- Taxable value: ₹8,000
- CGST: ₹720 · SGST: ₹720
- Invoice total: ₹9,440
If the same goods went to a customer in Telangana, it would be inter-state: a single IGST ₹1,440, and the total is still ₹9,440 — shown as one IGST line, not two.
Notice the split happens on the invoice, not the challan. The challan just carried the goods there safely.
Delivery challans in Yojika
Yojika ships delivery challans as their own document, with a separate DC number series (for example DC2025-26/0001), so they never disturb your invoice numbering, your stock, or your GST reports.
- Create a challan, pick the customer, add the goods, and record the vehicle number and transport details.
- On the print preview, a Show Amounts / Hide Amounts chip lets you send just a list of goods without prices when you prefer. Print to A4, A5 or a thermal width.
- When the sale is confirmed, click Convert to invoice — Yojika raises a real tax invoice with a fresh number and the same items, and the tax split (CGST/SGST or IGST) is worked out automatically from the place of supply.
To be clear about scope: Yojika prints the challan and turns it into an invoice on your PC — it does not file returns and does not generate e-way bills. The transporter’s e-way bill obligation is separate; check the current threshold on gst.gov.in or with your CA.
- See what’s included on the features page.
- Check simple, transparent pricing on the pricing page.
- Or download Yojika and try it free for 14 days.
Sending a price offer instead of goods? See our guide to making a quotation or estimate for a shop, and the difference between a tax invoice and a bill of supply.
This article is general information, not tax advice. GST rules and thresholds change — confirm the current position on gst.gov.in or with your CA.