When to use a delivery challan instead of an invoice

A delivery challan is used when goods move but a tax invoice is not the right document at that moment. Common examples include job work, goods sent on approval, or transport in situations where quantity is not finally known at dispatch.

What it should capture

• Date and serial number.
• Name, address and GSTIN of the sender if applicable.
• Name, address and GSTIN of the recipient if applicable.
• Description, quantity and taxable value where relevant.
• Reason for transportation.

What it is not

A delivery challan is not a shortcut to skip invoicing forever. It is a temporary movement document for specific GST-allowed cases.