Delivery Challan Under GST — Rule 55 Format
Rule 55 of the CGST Rules, 2017 lets you move goods on a delivery challan instead of a tax invoice. This page sets out the exact format the rule requires, the nine particulars a challan must carry, and the three copies you have to prepare.
In short: a delivery challan under Rule 55 is a document used to transport goods where no tax invoice is issued at the time of removal — for job work, for liquid gas of unknown quantity, or for any movement that is not a supply. It must be serially numbered, run to no more than sixteen characters, carry nine specified particulars, and be prepared in triplicate.
Need the document itself?
The free generator lives on our delivery challan format page — fill it in and download in Excel, Word or PDF, printed in triplicate. This page covers what the rule actually requires.
What is a delivery challan under GST?
A delivery challan is a document that accompanies goods in transit when a tax invoice is not issued at the time of removal. Rule 55 of the CGST Rules, 2017 permits the consigner to issue one in place of an invoice, and specifies exactly what it must contain. It is not proof of sale and it does not by itself transfer ownership.
The distinction matters because GST is charged on supply. Plenty of goods movements are not supplies at all — sending material to a job worker, shifting stock between your own godowns, carrying samples to an exhibition. There is no invoice to raise, but the goods still have to move lawfully and be accounted for. That is the gap the delivery challan fills.
When can you issue a delivery challan instead of a tax invoice?
Rule 55(1) lists four situations in which the consigner may issue a delivery challan in lieu of an invoice at the time of removal:
| Clause | Situation | Typical example |
|---|---|---|
| (a) | Supply of liquid gas where the quantity at the time of removal from the supplier's place of business is not known | Bulk LPG loaded into a tanker and weighed on delivery |
| (b) | Transportation of goods for job work | Fabric sent to a dyeing unit; castings sent out for machining |
| (c) | Transportation of goods for reasons other than by way of supply | Branch stock transfer, goods sent on approval, exhibition material, machinery sent for repair |
| (d) | Such other supplies as may be notified by the Board | Anything CBIC notifies from time to time |
Clause (c) is the one that does most of the work in practice. If goods are leaving your premises and the movement is not a sale, a delivery challan is almost always the right document.
What must a delivery challan contain?
Rule 55(1) requires nine particulars: the challan date and number; the consigner's name, address and GSTIN; the consignee's name, address and GSTIN or UIN; HSN code and description of goods; quantity; taxable value; tax rate and amount where the transport is for supply; place of supply for inter-State movement; and a signature.
The challan must also be serially numbered, not exceeding sixteen characters, in one or multiple series. Here is the full list as the rule states it:
| # | Particular | Notes |
|---|---|---|
| (i) | Date and number of the delivery challan | Number must not exceed 16 characters |
| (ii) | Name, address and GSTIN of the consigner | Only if registered |
| (iii) | Name, address and GSTIN or UIN of the consignee | Only if registered |
| (iv) | HSN code and description of goods | Both, not one or the other |
| (v) | Quantity | May be provisional where the exact quantity is not known |
| (vi) | Taxable value | Required even when no tax is charged |
| (vii) | Tax rate and tax amount — central, State, integrated, Union territory tax or cess | Only where the transportation is for supply to the consignee |
| (viii) | Place of supply | Only in case of inter-State movement |
| (ix) | Signature | Of the consigner or an authorised signatory |
The point people miss: particulars (vii) and (viii) are conditional. If you are sending material for job work, that is not a supply to the consignee, so no tax rate or amount goes on the challan — but the taxable value at (vi) is still mandatory. A challan showing tax on a job-work movement is as wrong as one omitting the value.
How many copies of a delivery challan are needed?
Three. Rule 55(2) requires the challan to be prepared in triplicate where goods are supplied: the original marked Original for Consignee, the duplicate marked Duplicate for Transporter, and the triplicate marked Triplicate for Consigner.
| Copy | Marking | Who keeps it |
|---|---|---|
| Original | ORIGINAL FOR CONSIGNEE | Travels with the goods, kept by the recipient |
| Duplicate | DUPLICATE FOR TRANSPORTER | Held by the carrier during transit |
| Triplicate | TRIPLICATE FOR CONSIGNER | Retained by the sender for records |
The generator above produces all three, each correctly marked, one per page.
Do you need an e-way bill with a delivery challan?
Often, yes. Rule 55(3) says that where goods are transported on a delivery challan in lieu of an invoice, the movement must be declared as specified in Rule 138 — the e-way bill rule. A delivery challan does not exempt you from the e-way bill; it is the document the e-way bill refers to.
In practice: generate the challan first, then raise the e-way bill against it, entering the challan number as the document number and selecting the challan as the document type. The consignment value threshold and State-specific rules under Rule 138 apply exactly as they would for an invoice.
Goods in SKD, CKD condition, or in batches and lots
Rule 55(5) covers consignments that cannot physically move in one go — a machine shipped semi knocked down, or an order dispatched in lots. The sequence is prescribed:
- The supplier issues the complete invoice before dispatch of the first consignment.
- A delivery challan is issued for each subsequent consignment, giving a reference to that invoice.
- Each consignment carries its own delivery challan together with a duly certified copy of the invoice.
- The original invoice travels with the last consignment.
Getting this order wrong is a common audit finding — the invoice must precede the goods, not follow them.
Delivery challan vs tax invoice
| Delivery challan | Tax invoice | |
|---|---|---|
| Issued when | Goods move without a supply, or the quantity is not yet known | A taxable supply is made |
| Governing rule | Rule 55 | Rule 46 |
| Tax charged | Only where the transport is for supply to the consignee | Always, unless exempt |
| Copies | Triplicate | Triplicate for goods, duplicate for services |
| Input tax credit | Does not support a credit claim | Supports the recipient's credit claim |
| Reported in GSTR-1 | No | Yes |
If a tax invoice could not be issued when the goods were removed but the movement was for supply, Rule 55(4) requires the supplier to issue the tax invoice after delivery. The challan is a bridge, not a substitute.
How to create a delivery challan
- Pick the reason for movement — job work, stock transfer, approval, exhibition, repair. This decides whether tax appears on the document at all.
- Assign a serial number in a dedicated series, no longer than sixteen characters.
- Enter both parties — name, address and GSTIN of consigner and consignee, where registered.
- List the goods with HSN code, description, quantity and taxable value. Mark the quantity provisional if it is not yet exact.
- Add tax and place of supply only if applicable — tax where the movement is a supply to the consignee, place of supply where the movement is inter-State.
- Print in triplicate and sign each copy.
- Raise the e-way bill under Rule 138 if the consignment crosses the threshold.
Doing this more than a few times a month?
A challan on its own is easy. Keeping the series unbroken, carrying the value into your stock ledger, and raising the matching e-way bill is where it gets tedious. Arthlekha issues Rule 55 challans, posts the stock movement, and generates the e-way bill from the same screen.
Frequently asked questions
Is a delivery challan valid without a GSTIN?
Yes. Rule 55(1) requires the GSTIN of the consigner and consignee only if registered. An unregistered party's name and address are enough.
Can a delivery challan be issued for services?
No. Rule 55 governs the transportation of goods. Services have no physical movement to document.
What is the maximum length of a delivery challan number?
Sixteen characters. Rule 55(1) requires the challan to be serially numbered, not exceeding sixteen characters, in one or multiple series.
Is tax charged on a delivery challan?
Only where the transportation is for supply to the consignee. For job work, stock transfers and other non-supply movements, no tax rate or amount is shown — though the taxable value still is.
Do I need an e-way bill along with the delivery challan?
Where the consignment crosses the Rule 138 threshold, yes. Rule 55(3) expressly requires the movement to be declared as specified in Rule 138.
How long should delivery challans be retained?
Along with the rest of your GST records. Section 36 of the CGST Act requires accounts and records to be kept for 72 months from the due date of the annual return for that year.
Can I use one challan for several consignments?
No. Rule 55(5)(b) requires a separate delivery challan for each consignment where goods move in batches or lots, each referencing the original invoice.
What happens if goods move without a delivery challan?
The consignment can be detained under Section 129 of the CGST Act for moving without the documents prescribed. Penalties are assessed on the value of the goods.
About this page. The rule text summarised here is taken from Rule 55 of the Central Goods and Services Tax Rules, 2017 as published in the CBIC tax-information repository. It is written as general guidance, not as advice on your specific facts — check the current rule text or ask your chartered accountant before relying on it for a particular consignment.