Everything you need to know about a delivery challan | Free Template

A delivery challan provides details about the products that a seller has delivered to customers. The delivery challan typically contains information about:

  • The sender,
  • The recipient,
  • The date of delivery
  • A list of the products or items that have been shipped.

This document is used for record-keeping purposes and may need the customer to make payments for the goods received. A delivery challan may also include instructions for the delivery driver.

The delivery challan is not a digital document. It is a physical document that the supplier has to generate and give to the customer when receiving the goods. It should be noted that you can issue a delivery challan without an invoice. But, you will need to generate an invoice eventually.

Why You Need to Have a Format for Delivery Challan?

There are many formats for delivery challans in India, such as:

  • PDF
  • Word
  • Excel
  • CSV format

Some of them are easier to use than others but they all provide the same benefits:

  • You will make sure that all the necessary information is included in the document.
  • You'll issue delivery challans 4x faster.
  • You will make fewer errors.

Where can we find a delivery challan format?

The most suitable format for a delivery challan depends on the specific needs of the customer and supplier. You are always able to create a delivery challan on the kernel site, which contains all the required information for GST purposes. It simplifies your business process and saves you time. You can also access and manage your finances using the Kernel app from anywhere, anytime.

What Are The Contents of The GST Delivery Challan Format In Excel and Word Template in India?

1. Basic Details

The main details of GST Delivery Challan are:

  • Name and address of the seller,
  • Name and address of the buyer,
  • Invoice number,
  • Date of the invoice,
  • Delivery challan number,
  • Date of the delivery challan.

2. Description of Goods or Services

The format should include:

  • The quantity
  • The unit price
  • The total price
  • GST rates for goods or services.

3. Terms and Conditions

The next step is to determine the terms and conditions of the delivery, which should include:

  • The mode of transport
  • The date of delivery
  • The place of delivery
  • The signature of the person responsible for the delivery.

What are the benefits of the delivery challan?

There are several reasons why you should use delivery challans in India.

  • Proof of delivery.

A delivery challan is always present when the delivery is made. It allows the recipient to check if all the purchased goods are in place. As proof of delivery, the customer must have a copy of the delivery challan.

  • When goods are shipped on an approved foundation.

It is helpful when the invoice is not prepared as the goods are delivered to the customer's place for sale or return. A delivery challan is issued at the time of supply in such cases.

  • Used in cases where the E-way bill is not required

According to CGST Rules, a delivery challan should be sent with the goods supplied when:

1. An E-way Bill is not needed

If you are a GST registered person, you cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (single invoice/bill/delivery challan) without an E-way bill.

2. A tax invoice or a bill of supply is not prepared.

  • Goods are supplied in multiple shipments.

Sometimes goods are transported partially or completely damaged. In such cases, the supplier issues an invoice before the first delivery. Then, it uses a delivery challan for each next delivery along with the details of the original invoice.

  • Transport of goods outside India for exhibition or export promotion

Such transport is neither considered as supply nor export. As there is no export, a Letter of Undertaking (LUT) or bond is not required. Such goods will be sent along with a delivery challan.


What are the Statuses of the Delivery Challan?

You can control your delivery challan in Kernel to understand where it is at the moment. The statuses of delivery challan are as follows:

  • Draft: The draft status in a delivery challan means that the challan is still being created and has not been finalized yet.
  • Sent: As soon as the document is created it is then sent to the recipient with the ordered goods. The "sent" status in a delivery challan means that the challan has been sent to the customer, but the customer has not yet confirmed receipt.
  • Completed: When the customer receives  delivery challan and confirms that everything is in order with the delivery, the status is changed to “Completed.”
  • Cancelled: The "cancelled" status in a delivery challan means that the challan has been cancelled and is no longer valid. Cancellation happens for various reasons, such as the customer no longer needs the goods, there's something wrong with the delivered goods or the seller is unable to fulfil the order.

What happens when the delivery challan reaches the customer?

The customer will check the delivery challan to ensure that everything they ordered was delivered. If there are any problems, they will contact the supplier to resolve the issue. Once the customer is satisfied, they will make the payment according to the agreed-upon terms.

Who needs to issue delivery challans?

Businesses that need to deliver products or materials to customers will often find it helpful to use delivery challans. This document can help to streamline the shipping process and provide a clear record of what was shipped when it was sent, and to whom it was delivered.

A delivery challan can also help businesses save time and money on printing and shipping costs. Companies can avoid creating separate invoices and shipping documents by using this document.

Some businesses that may need to use delivery challans include:

• Retailers

• Wholesalers

• Manufacturers

• Distributors

• E-commerce businesses

Other Cases For Issuing a delivery challan:

Besides shipping products or materials, there are other reasons for issuing a delivery challan:

  • Tracking Returned Goods:

Some businesses may use delivery challans to track shipments of returned goods.

  • Shipment Tracking:

Others may use delivery challans to track shipments of exchanged goods.

  • Multiple Locations Shipments:

Some businesses may also use delivery challans to track shipments of delivered goods to multiple locations.

In these cases, the delivery challan can help businesses track which products were delivered to which locations.

Here's a Checklist for Issuing an Efficient Delivery  Challan

Here are some practical tips businesses can do to ensure that their delivery challans are efficient:

  • Use a software system that can generate delivery challans automatically.
  • Use Kernel's delivery challan template.

By doing so, businesses can ensure that their documents contain all necessary information.

  • Include all relevant information:
  • The names and addresses of the supplier and recipient,
  • The date of the shipment,
  • The delivery challan number,
  • A description of the products being shipped.
  • Use a unique delivery challan number for each shipment.

This can help businesses keep track of shipments and ensure that products are delivered on time.

  • Keep a copy of the delivery challan.

This can help businesses resolve any issues with missing or damaged products.

What Is The Difference Between an E-way Bill and Delivery Challan in India?

An E-way Bill is generated when goods worth more than Rs 50,000 are transported from one place to another, either within a state or interstate. The E-way Bill system streamlines the transportation of goods and helps businesses comply with the GST rules.

The E-way Bill system is integrated with the GST system, and the E-way Bill number (EBN) is generated automatically when a GST invoice is created. The EBN is then mentioned on the delivery challan, and the transporter can use this number to track the movement of the goods.

  • The main difference between an E-way Bill and a delivery challan is that an E-way Bill is generated automatically when a GST invoice is created. In contrast, a delivery challan is issued by the supplier of goods.
  • On the other hand, both an E-way Bill as well as a delivery challan are documents used to transport goods in India.
  • Both documents contain details such as:
  • The name and address of the supplier and the recipient,
  • The GSTIN of the supplier,
  • The description of the goods,
  • The value of the goods,
  • The mode of transport.

If you need to know more about an E-way Bill read the article.

What is the Difference Between An Invoice and A Delivery Challan in India?

An invoice is a document issued by a supplier to a customer and is used to request payment for goods or services. An invoice typically contains:

  • The name and address of the supplier,
  • The name and address of the customer,
  • The date of the invoice,
  • The date of the transaction,
  • The amount due,
  • The terms of payment.

The main difference between an invoice and a delivery challan is that an invoice is used to request payment. In contrast, a delivery challan is used to record the delivery of goods. In other words, an invoice must be issued before a delivery challan can be issued. But, we can send a delivery challan without an invoice.

What are the Differences between tax invoices and delivery challans in India?

A tax invoice is a document used to request payment for goods or services subject to GST.

A tax invoice typically contains:

  • The name and address of the supplier,
  • The name and address of the customer,
  • The date of the invoice,
  • The date of the transaction,
  • The GST amount, and the GST rate.

A tax invoice is not a standard invoice. The main difference between an invoice and a tax invoice is that tax invoices include information about Goods & Services Taxes (GST). In contrast, standard invoices don't. Whether you send invoices or tax invoices, you should keep a detailed record of your sales documents.

The main difference between a tax invoice and a delivery challan is that a tax invoice is used to request payment for goods or services subject to GST. In contrast, a delivery challan is used to record the delivery of goods. In other words, a tax invoice must be issued before a delivery challan can be generated. We can issue a delivery challan without a tax invoice being issued.

What are the differences between delivery challan and e-challan?

E-challans are electronic waybills used to transport goods between two points. It is a digital version of the traditional paper waybill.

The main difference between a delivery challan and an e-challan is that a delivery challan is a physical document issued to the customer. In contrast, an e-challan is an electronic document sent to the client electronically.

FAQs About Delivery Challans in India

  1. What is a delivery challan?

A delivery challan is a document used to track shipments of products or materials. This document ensures companies that products are delivered on time and there are no issues with missing or damaged products.

2. Why is a delivery challan needed?

A delivery challan helps businesses:

  • Keep track of shipments,
  • Ensure that products are delivered on time,
  • Confirm that the customer or client has received the products,
  • Resolve any issues with damaged or missing products.

3. What are the critical components of a delivery challan?

The critical components of a delivery challan are:

  • The name and address of the supplier,
  • The name and address of the recipient,
  • The date of the shipment,
  • The delivery challan number.

4. How can businesses ensure that their delivery challans are efficient?

Businesses can do a few things to ensure that their delivery challans are efficient. These include:

  • Using a delivery challan template, including all relevant information,
  • A unique delivery challan number for each shipment,
  • Keeping a copy of the delivery challan.

5. What is the difference between an invoice and a delivery challan?

An invoice is a document used to request payment for goods or services. A delivery challan is a document used to track shipments of products or materials.

6. Is a delivery challan a digital document?

A delivery challan is not a digital document. It is a physical document that the supplier has to generate and give to the customer after receiving the goods.

7. What is the format of the delivery challan?

Delivery challans can be in any format. But, it should contain all the required information specified by the GST law.

8. Can we issue a delivery challan without an invoice?

Yes, you can raise a delivery challan without an invoice. However, you will need to generate an invoice eventually.

9. Do we need to mention the GSTIN on the delivery challan?

You don't need to mention the GSTIN on the delivery challan. But, you will have to include it on the invoice.

10. What happens when the delivery challan reaches the customer?

The customer would then check the delivery challan to ensure that everything they ordered was accounted for. If there are any discrepancies, they will contact the supplier to resolve the issue. Once the customer is satisfied, they will make the payment according to the agreed-upon terms.

11. If the delivery challan is digital, where is it sent to the client?

If the delivery challan is digital, it can be emailed to the customer or delivered through a secure file-sharing portal.

12. How is delivery challan different from E-challan?

The main difference between a delivery challan and an e-challan is that a delivery challan is a physical document issued to the customer. In contrast, an e-challan is an electronic document sent to the client electronically.