Job work
Send material to a job worker for processing and track its return.
Bill formats
Delivery challan format
A delivery challan goes with goods that move without a tax invoice.
When to use it
- Goods sent for job work.
- Goods sent on approval or sale-or-return.
- Supply of liquid gas where the quantity is not known at dispatch.
- Moving goods between your own branches in the same state.
What it must show
- Challan number (up to 16 characters, one series per year) and date
- Your name, address and GSTIN
- Consignee name, address and GSTIN if registered
- HSN, description, quantity and taxable value
- Tax rate and amount when the movement is a supply
- Place of supply for inter-state movement
- Signature
Good to know
- Make it in three copies: original for the consignee, duplicate for the transporter, triplicate for you.
- An e-way bill may also be needed when the value is over ₹50,000.
Sample: Delivery challan format
Made with our invoice generator. The businesses here are examples.
Delivery challan
Goods sent on approval / for job work / for supply. Not a tax invoice.
From
Jadhav Engineering Works
Plot 12, Chakan MIDC, Pune 410501
GSTIN: 27ABCDE1234F1Z0
State: Maharashtra (27)
Consignee
Shinde Powder Coating
Plot 7, Talegaon MIDC, Pune 410507
- Challan no.
- 2026-27/014
- Date
- 12 Oct 2026
| # | Description | HSN/SAC | Qty | Rate (₹) | Amount |
|---|---|---|---|---|---|
| 1 | MS brackets for powder coating (job work) | 7326 | 400 | ₹35.00 | ₹14,000.00 |
Amount in words
Rupees Fourteen Thousand Only
- Total
- ₹14,000.00
Notes and terms
Sent for job work. To be returned within one year.
For Jadhav Engineering Works
Authorised signatory
Make one now
Open the generator with this format picked. Print it or save it as PDF.
Who uses it
Approval and samples
Send goods on approval or sale-or-return to a customer.
Branch transfers
Move stock between your own godowns or shops in the same state.
Mistakes to avoid
Not stored
The free generator builds your document for one page and keeps no copy.
Make three copies
Consignee, transporter and your own file.
Check the e-way bill
Movements over ₹50,000 may need one.
Check with your CA
GST rules change; confirm anything unusual before you rely on it.
Questions people ask
What is a delivery challan, and when is it used?
A delivery challan goes with goods that move without a tax invoice: goods sent for job work, on approval or sale-or-return, liquid gas whose quantity isn't known at dispatch, or stock moving between your own branches in the same state. It carries a challan number and date, both parties' details, HSN, description, quantity and value, and a signature.
- 3 copies Original, duplicate. And triplicate.
- 16 chars Challan number. One series a year.
- ₹50,000 E-way bill. May be needed above.
- No sale Movement only. Invoice later if sold.
Is a delivery challan the same as an invoice?
No. A delivery challan records the movement of goods, not a sale. If the goods are later sold, for example after an approval period, you issue a tax invoice at that point. For a normal sale where goods leave with the bill, the tax invoice itself goes with the goods.
When should I use a delivery challan?
When goods move without a sale at that moment: sending material for job work, sending goods on approval or sale-or-return, supplying liquid gas when the exact quantity isn't known yet, or transferring stock between your own branches in the same state. Exhibitions and repairs are other common cases.
How many copies of a delivery challan are needed?
Three: the original for the consignee, the duplicate for the transporter and the triplicate for your own records. Mark each copy clearly. The transporter's copy travels with the goods so it can be shown if the vehicle is checked on the way. Keep yours filed by date.
Is an e-way bill needed with a delivery challan?
It may be. An e-way bill is generally needed when goods worth more than ₹50,000 move, including many movements on a challan such as job work. Some states set their own limits for movement within the state. Check the current rules before dispatch. It's generated on the e-way bill portal.
How should delivery challans be numbered?
Use a serial number of up to 16 characters, unique within each financial year, such as DC/26-27/0045. Keep one series per year so challans are easy to trace. Refer to the challan number on the tax invoice if the goods are later sold. Start a new series each year.
What value should I show on a challan?
Show the taxable value of the goods, usually their cost or market value, even though no sale is happening. The value matters for the e-way bill and for insurance in transit. Where the movement is itself a supply, also show the tax rate and amount.
What is job work?
Job work is when you send your material to another business to process it, such as cutting, stitching, polishing or printing, and it comes back to you. The material moves on a delivery challan, not an invoice, because ownership stays with you. Keep the challans until the goods come back.
How long can goods stay with a job worker?
Under GST, inputs sent for job work generally have to come back within one year, and capital goods within three years, or the movement may be treated as a supply. Keep the challans and return records together. Your CA can confirm the current time limits.
What is sale-or-return?
Goods sent on sale-or-return or approval go to a customer who can keep or return them, such as jewellery or machinery sent for a trial. They travel on a challan. If the customer keeps them, issue a tax invoice; if not, the goods come back on the same challan.
Do branch transfers need a challan?
Transfers between your own branches in the same state, under the same GSTIN, move on a delivery challan. Transfers to a branch in another state are usually treated as a supply between different registrations and need a tax invoice. Check the rules for your setup.
Does the consignee need to sign the challan?
It's good practice. A signed copy back from the consignee proves the goods arrived in the stated quantity and condition, which helps in any later dispute. A photo of the signed copy sent on WhatsApp is often enough for small businesses. Ask for it on every delivery, not only the large ones.
Do unregistered businesses use delivery challans?
Yes. Any business can use a challan to record goods leaving without a sale, such as samples or repairs. Leave out the GST details if you're not registered. It still helps you keep track of what's with whom and protects you if goods go missing.
How do I make a delivery challan with the free generator?
Open the free invoice generator, choose Delivery challan, and fill in your details, the consignee and the items with quantity and value. Print three copies, or save a PDF and print as many as you need. The generator doesn't keep a copy. Number each challan first.
Can I convert a challan into an invoice later?
Yes. When the goods are sold, issue a tax invoice that refers to the challan number and date. Don't just relabel the challan, because the invoice needs its own number in your invoice series. Billing software can copy the items across to save time. Keep both on file.
Is the delivery challan format free?
Yes. The sample format and the free invoice generator are free with no sign-up and no limit, and nothing you type is stored. Marketiism, our paid software, tracks stock movements, challans and invoices together if you'd like that kept for you. Use the format as often as you need.
Want this inside your own account?
Marketiism keeps your invoice numbers, GST reports, UPI payment links and WhatsApp reminders in one place. Leave your details and we'll call to set it up for your business, or start the trial yourself.
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