Delivery Challan Format and Templates for Excel

When moving goods from one place to another, tracking every detail is essential. That’s where a delivery challan comes into play.

A well-structured delivery challan format makes sure that all items are accounted for during transit. Businesses can also use delivery challans to stay organized and compliant with regulations.

Further in reading, we’ll explore everything you need to know about delivery challan and templates for Excel. You’ll learn what a delivery challan is, check it, and be able to download a sample of an ideal Excel format, and even understand when and why to issue one.

Let’s begin.

What is a Delivery Challan?

A delivery challan is a significant document that is useful when a business transports its goods from one place to another. It keeps a detailed record of the items delivered, ensuring that both the sender and receiver have a clear understanding of the transaction.

Download Delivery Challan Format in Excel

Creating a delivery challan in Excel is simple and highly customizable to match your business accounting needs.

An ideal delivery challan typically includes sections for the sender and receiver’s details, a unique challan number, date, item descriptions, quantities, and signatures.

Check out the following Excel template for delivery challan:

Download in .xlsx format for Excel

OR

Create a copy in Google Sheets

When is a Delivery Challan Issued?

A delivery challan is issued under different circumstances to ensure a smooth and transparent business transaction. The delivery challan number acts as proof of goods dispatched to maintain accurate records.

Here are some major occurrences when the delivery challan is issued:

• Goods Transfers: when the inventory moves between different branches or warehouses, you need a delivery challan for transfer.
• Job Work: when goods are sent to another party for processing or manufacturing.
• Sales Without Immediate Invoicing: when delivering products for which there is no raising invoice immediately.
• Returns and Exchanges: for handling product returns or exchanges between businesses.

Types of Delivery Challan

The goods will be transported under different scenarios. Each type of transportation will thus carry delivery challans since they effectively address specific needs.

Let’s explore each briefly:

Standard Delivery Challan

This challan is used for regular shipments between businesses. It includes all necessary details about the goods being transported, ensuring clarity and accountability.

Job Work Delivery Challan

Specifically designed for job work transactions, this challan documents goods sent for processing or manufacturing by another party, facilitating accurate tracking and management.

Stock Transfer Delivery Challan

This challan is employed when transferring stock between different locations within the same organization. It helps maintain precise inventory records and ensure seamless internal logistics.

Consignment Delivery Challan

This challan is used when goods are sent on consignment. Ownership remains with the sender until the consignee sells the goods. However, it is used to track the movement and status of consigned goods.

The Difference Between Tax Invoice and Delivery Challan

Yes, both a tax invoice and a delivery challan are essential documents in business transactions. But they serve distinct purposes and contain different information.

A tax invoice is issued at the time of sale and includes tax details, serving as proof of a taxable supply. In contrast, a delivery challan is used to document the delivery of goods without necessarily involving a sale at that moment, especially when no invoice is issued immediately.

Below, we’ll explore the key differences in comparison between a delivery challan and a tax invoice.

Requirements of Delivery Challan Under GST

Under GST in India, businesses that transport goods must issue a delivery challan. This is critical to maintaining accurate records and ensuring compliance with tax regulations.

Also, the GST framework mandates specific rules regarding delivery challans to streamline the movement of goods and prevent discrepancies.

Let’s explore those briefly further in this section.

Key Factors and Rules

When creating a delivery challan under GST, make sure you adhere to the following key factors and rules:

Mention the purpose of dispatch

Specify the reason for dispatching the goods, whether it’s for job work, sales, stock transfer, or other purposes. This information clarifies the intent behind the movement and ensures proper documentation.

Disclose the movement of goods

When goods are moved from one place to another for reasons other than immediate sale, a delivery challan becomes essential. This includes transferring goods to a warehouse, sending them for job work, or delivering them to a customer with a sale happening later.

Provide a description of goods

Provide detailed descriptions of the goods being transported, including quantities, units of measurement, and applicable HSN/SAC codes. Clear descriptions help in verifying the contents during transit and upon delivery.

Include details of the sender and receiver

Include comprehensive information about both the sender and the receiver, such as names, addresses, and GST Identification Numbers (GSTINs). Accurate details ensure that the goods are delivered to the correct party and aid in tax compliance.

Meet audits and compliance requirements

In case of a GST audit, delivery challans serve as supporting documents, demonstrating compliance with regulations and proper record-keeping practices.

Issue it on time

Issue the delivery challan at the time of dispatch to ensure that records are up-to-date and transactions are properly documented. Prompt issuance helps maintain accurate, real-time records.

Mention serial number

Every delivery challan must have a unique serial number, not exceeding 16 characters. This ensures proper documentation and helps avoid any confusion.

Disclose the type of supply

While a tax invoice is a must for taxable goods under GST, a delivery challan is often used for exempt or non-taxable supplies to maintain a record of the transaction (applicable even if the GST isn’t applicable).

Components to be Included

The delivery challan should have all the necessary components for better clarity and meeting compliance with GST calculations and invoicing.

A well-structured delivery challan under GST must contain the following:

• Challan Number and Date: A unique identifier and the date of issuance.
• Sender’s Information: Name, address, and GSTIN of the person or business sending the goods.
• Receiver’s Information: Name, address, and GSTIN of the person or business receiving the goods.
• Details of Goods: Comprehensive description, including HSN/SAC codes, quantity, and unit of measurement.
• Purpose of Dispatch: Clear indication of why the goods are being sent, such as for job work or stock transfer.
• Signature: Authorized signatures from both parties to confirm the delivery.

Other Templates for Delivery Challan in Excel, Word and PDF

Explore delivery challan templates in different formats and multiple file types. Whether you prefer working with Excel, Word, PDF, or cloud-based solutions like Google Docs and Google Sheets, there’s a format that suits your workflow.

Template Option 1

Download in Excel | Word | PDF

OR

Copy in Google Sheets

Template Option 2

Download in Excel | Word | PDF

OR

Copy in Google Sheets

How to Use Kladana For Creating Delivery Challan

You’ve already checked the delivery challan example and format in Excel. But if you still want to know how to create a delivery challan easily, try using Kladana.

With Kladana, you can generate accurate and professional delivery challans that match your billing requirements. Below, we’ve mentioned how this can be done.

Step-by-Step Guide to Creating a Delivery Challan with Kladana

1. Log In to Your Kladana Account: Access your dashboard using your credentials.
2. Once logged in, click on your Account icon > Settings. In here, check for Lists. Click on + List. This will open a custom list setup window. Hare, name it as ‘Challan Type’ and save it. You will now see the added Challan Type in the list.
3. Click on it, and you’ll see a workspace where you can add different types of challans. Сlick on + Challan Type to add more challans and name them.
4. Now, you’d definitely be using the delivery challan for shipment. So navigate to the Sales section and click on Shipments.
5. Here, click on Settings. Next, you’ll see the settings window, wherein you’ll have to add a custom field.

   

   When adding a custom field, you’ll have to append the following information:

   • The Field Name should be typed as ‘Challan Type’, which is the one we created in the first step.
   • In Type, choose ‘Dataset’ and then choose ‘Challan Type’ from the dropdown menu
   • The Field name Should be added as ‘Reference No.’ while its type should be chosen as ‘Integral Number’ from the dropdown menu.
   • Next, click on the Save option.
   
   
6. After this, you’ll be back to the Shipment option, where you’ll create a Shipment. Once you click on +Shipment, you’ll see a window that helps you choose Challan type and also add the Reference No.
7. Now, we’ll click the Print icon and Choose “Add a template”

For starters, here’s a link to download the template.

Now, you can print a Delivery Challan based on a Shipment or Stock Transfer:

For this, you’ll go to

1. Sales → Shipments or Inventory → Transfers.
2. Select the transaction in the list.
3. Click Print and select a Delivery Challan in the dropdown menu.

You’ll then be able to see the Challan in a PDF format.

Benefits of Using Kladana for Delivery Challan

Now you know that Kladana makes it easy to integrate challan in your present product shipments.

This way, it can help —

• Save time by automating repetitive tasks
• Reduce errors with automated data entry
• Ensure compliance to meet all GST requirements
• Secure document storage since all your challans are stored securely within Kladana’s cloud-based system
• Enhance Collaboration by allowing you to share delivery challan with your team, suppliers, and customers.

Advantages of Delivery Challan

Having a delivery challan can simplify the movement of goods as you avail transparency and compliance.

So, be it stock transfers, job work, or sales transactions, you can use delivery challans to stay organized and maintain accurate records.

Here are the major benefits of using delivery challan:

Ensures Streamlined Movement of Goods

Delivery challans provide a clear record of the items being transported, reducing confusion and ensuring smooth logistics during transit.

Simplifies Inventory Tracking

Helps businesses monitor stock movement between locations, making inventory management easier to avoid discrepancies.

Promotes Ease of Record-Keeping

Serves as a detailed record of goods dispatched, aiding in quick reconciliation and facilitating easier audits.

Helps In Staying Compliant

Ensures adherence to GST regulations by documenting goods movement, especially for non-taxable or exempt supplies.

Acts as a Proof of Dispatch

Acts as proof that goods were sent from the sender to the receiver, minimizing disputes and fostering transparency in business transactions.

Provides a Customizable Format

Customize delivery challan in xls or doc format to suit specific business billing requirements. You can also edit branding and additional details like job work or consignment information.

Supports Audits

Delivery challans act as supporting documents during GST audits, showcasing compliance and accurate record-keeping practices.

Reduces Burden of Tax Invoicing

Delivery challans serve as a practical alternative to tax invoices for non-taxable supplies or goods delivered before an invoice is issued.

Drives Clear Communication

Provides all stakeholders, including transporters and receivers, with essential details about the goods being delivered, ensuring smooth coordination.

FAQs on Creating and Issuing Delivery Challan

Let us now address some of the most commonly asked questions about creating and issuing delivery challans.

What is a delivery challan number?

A delivery challan number is a unique identifier assigned to each challan to enforce traceability and easy reference for transactions.

When should a delivery challan be issued?

The delivery challan is issued when goods are moved for purposes other than immediate sale. For example, stock transfers, job work, returns, or consignments.

Can a delivery challan replace a tax invoice?

No, a delivery challan is not a replacement of a tax invoice but is helpful when goods are delivered without a sale or when GST is not applicable.

What information should be included in a delivery challan?

A delivery challan should include:

• Unique challan number and issue date
• Sender and receiver details (name, address, GSTIN)
• Description of goods, including HSN/SAC codes
• Quantity, unit of measurement, and purpose of dispatch
• Authorized signatures from both parties

Is a delivery challan mandatory under GST?

Though a delivery challan is not mandatory for all transactions, it is essential for specific scenarios such as non-taxable supplies, job work, and goods sent on approval.

Is it possible to store Delivery digitally?

Yes, delivery challans can be stored digitally by using platforms like Kladana. It enables you to create, save, and retrieve challans electronically.

How long should delivery challans be retained?

Under GST regulations, businesses are required to retain copies of delivery challans for a minimum of six years for audit and compliance purposes.

Can a delivery challan be issued for exempted goods?

Yes, delivery challans are often used for exempted or non-taxable goods.

Are delivery challans necessary for inter-state transportation?

Yes, delivery challans are critical for interstate transportation. They serve as proof of goods in transit and help avoid issues with authorities during inspections.

How can Kladana help with delivery challans?

Kladana simplifies the process by providing customizable templates, automating data entry, and offering real-time tracking of goods so that your delivery challans meet GST requirements.