A delivery challan, in the format everybody expects.
For job work, samples, returns and anything else that moves without being sold. Fill it in, print it, done.
From (your business)
Ship to (consignee)
Items
Your business name
Your address
DELIVERY CHALLAN
No: —
Date: —
Purpose: Job work
Ship to
—
| # | Description | HSN | Qty | Unit | Rate | Amount |
|---|---|---|---|---|---|---|
| 1 | — | 1 | Nos | 0.00 | 0.00 |
- Value of goods
- ₹0.00
- Total
- ₹0.00
Not a tax invoice. Value stated for e-way bill and record purposes only.
A delivery challan is what accompanies goods that are moving but not being sold. Material going to a job-work vendor, a sample to a customer, a machine going out for repair, stock moving between your own godowns — none of those are supplies, so none of them get a tax invoice, and all of them still have to be documented.
The format is not something you get to invent. It has to identify both ends, describe what is moving and why, carry a serial number and a date, and state the value of the goods even though no money is changing hands — because that value is what an e-way bill threshold is measured against.
This produces one in the standard layout, with the usual purposes preset. It runs in your browser and stores nothing.
Challan or invoice — the test
The question is whether a supply is taking place. If ownership is transferring and money is due, it is an invoice. If the goods are moving and coming back, or moving between two of your own places, or going out for a process and returning, it is a challan.
Job work is the case that catches people, because the material physically leaves and sometimes stays away for weeks. It has not been sold — it is still yours, still on your books — so it moves on a challan, and it comes back on one.
Three copies, and why
The convention is three: the original for the consignee, a duplicate for the transporter and a triplicate for you. The transporter's copy is the one that matters at a checkpost, and it is the one most often forgotten when a challan is written by hand at the gate at seven in the evening.
Whether an e-way bill is also required depends on the consignment value and the route, not on the fact that it is a challan rather than an invoice. Goods moving for job work above the threshold need one just as a sale would.
The part a challan cannot do on its own
A challan records that material left. It does not record what is supposed to come back, how much scrap was agreed, or how long it has been outside — and those are the three questions that get asked at the year end about material lying with third parties.
That is a tracking problem rather than a document problem. Where job work is regular, the challan should be produced by the system that is already holding the expected return and the scrap allowance, so the reconciliation is a report instead of an afternoon with two challan books.
Questions people ask.
What is a delivery challan used for?
For goods that move without being sold — material sent for job work, samples, goods sent for repair, and stock transferred between your own locations. No supply is taking place, so no tax invoice is issued.
What is the difference between a delivery challan and an invoice?
An invoice is issued when ownership transfers and payment is due. A challan accompanies goods that are moving but not being sold — they are coming back, or going between two of your own places, or going out for a process.
Do I need an e-way bill with a delivery challan?
Possibly. It depends on the consignment value and the route, not on whether the document is a challan or an invoice. Goods moving for job work above the threshold need one just as a sale would.
How many copies of a delivery challan are needed?
Three by convention — original for the consignee, duplicate for the transporter and triplicate for the consignor. The transporter's copy is the one that matters at a checkpost.
Does a challan need a value if nothing is being sold?
Yes. The value of the goods has to be stated even though no money changes hands, because that figure is what an e-way bill threshold is measured against.
Other free tools
Doing this for every item, every day?
A calculator is the right tool once. When it is every item in the store, it belongs in the system that already knows the numbers.