A delivery challan goes with goods that move without a tax invoice yet — job work, goods sent on approval, moving stock to your own branch, or goods whose final quantity is not known. It needs a serial number, date, both parties’ details, item, HSN, quantity and value, and is made in three copies.
What is a delivery challan?
A delivery challan (DC) is the document that travels with goods when the sale has not happened yet, or when the movement is not a sale at all. The tax invoice comes later — or never, if the goods come back.
When can goods move on a challan?
- Job work — cloth sent to a tailor, metal sent for plating.
- Goods sent on approval or for sale-or-return — the customer decides later.
- Moving stock to your own godown or branch.
- Goods whose quantity is fixed only at delivery, such as gas or liquids.
- Site deliveries in parts, where the bill is made after the last load.
What the challan must show
| Detail | Example |
|---|---|
| Serial number (up to 16 characters, unique for the year) | DC/26-27/0077 |
| Date | 16 Nov 2026 |
| Your name, address and GSTIN | Meena Hardware, Tirupathur, 33ABCDE1234F1Z5 |
| Receiver’s name, address and GSTIN (if registered) | Ravi Constructions, Vellore |
| Item description and HSN | Cement 50 kg — 2523 |
| Quantity and taxable value | 40 bags — ₹15,200 |
| Tax rate and amount (when goods go to the buyer) | 18% — ₹2,736 |
| Place of supply (only when sent to another state) | Karnataka — if the site were in Bengaluru |
| Signature | Authorised signatory |
Make three copies: the original for the receiver, the duplicate for the transporter and the triplicate for you.
If the goods are worth more than ₹50,000, you may need an e-way bill too — a challan does not replace it.
Challans in Billman
Billman numbers challans automatically from your DC series, keeps a pending list (pending, delivered, billed, returned) and converts a challan into a GST invoice in one click. You can drop or reduce lines while converting — anything not billed goes back into stock.
✨In BillmanDelivery challans that turn into billsSee how it works →FAQ
Is a delivery challan the same as an invoice?
No. A challan records the movement of goods; the tax invoice records the sale. You may need both — the challan first, the invoice later.
Does a delivery challan need GST?
The challan shows the tax rate and amount when goods go to the buyer, but GST is paid on the invoice when the sale happens.
Can I convert a challan into a bill?
Yes. In Billman, open the challan and choose Convert to Invoice.
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