When to use a delivery challan

A delivery challan is used when goods move but it is not a sale, so a tax invoice is not appropriate.

Common cases

• Sending goods for job work
• Moving stock between your own branches
• Goods sent on approval or as samples
• Supply where the quantity is not known at dispatch (for example liquids)

The challan carries the description, quantity and value, and travels with the goods. An e-way bill may still be needed.