How this template was made: the field list and the six reasons for transport come from Rule 55(1) of the CGST Rules, laid out and the Excel totals written by us, not copied from another site. Carries the same one-line credit to BahiSathi our other templates do; delete it if you like.
A worked example
A Ludhiana furniture maker sends four sofa sets to a retailer in Chandigarh on approval — the retailer displays them for two weeks and pays only for what sells. Nothing has been sold yet, so no tax invoice exists for this movement.
| Goods | Qty | Reason | Approx. value |
|---|---|---|---|
| 3-seater sofa set | 4 | Supply on approval | ₹1,80,000 |
Because the consignment is worth more than ₹50,000, an e-way bill is also required for the vehicle carrying it — the challan number is one of the fields that e-way bill asks for. If the retailer buys two sets and returns two, a tax invoice is raised for the two sold, referencing this challan; the two returned need no document at all, since they were never sold.
The six reasons Rule 55 recognises
| Reason | When |
|---|---|
| Supply on approval | Goods go out for the buyer to inspect or try before deciding. |
| Job work | Raw material or semi-finished goods sent to a job worker, and the finished goods returned. |
| Line sales | Goods loaded for door-to-door delivery before the buyer or quantity is finalised. |
| Exhibition or fairs | Stock taken to a trade show or exhibition, with no sale yet confirmed. |
| Own use | Moving your own goods between your own premises or branches. |
| Other | Anything the five above don't cover. |
What a generic invoice template usually gets wrong
- Using an invoice template with the title changed to "Challan." Keeps a taxable-value and tax-split layout a challan has no use for, and invites someone to read it as a tax document it was never meant to be.
- No reason-for-transport field. The one thing that actually justifies moving goods without an invoice, and the first thing checked if the consignment is ever stopped and the challan inspected.
- No vehicle number or place-of-supply field — both are asked for on the e-way bill that accompanies most challans above the ₹50,000 threshold, so a challan missing them means retyping the same detail twice.
Questions
Does a delivery challan show GST?
Not usually — the movement it covers isn't a supply yet, so there is nothing to tax. It carries an approximate value for reference, not a taxable value with a tax split.
Do I still need an e-way bill?
Yes, separately, once the consignment value crosses ₹50,000 — a delivery challan does not replace that requirement, and the challan number is one of the details the e-way bill asks for.
What happens when the goods on approval actually sell?
You raise a tax invoice at that point, referencing the challan it relates to — see the GST Invoice format for the fields that invoice needs.
Is this the same as the invoice copy that travels with an already-sold consignment?
No. When a sale has already been invoiced, the invoice itself (or a copy) is the document that travels with the goods. A challan is specifically for movements where no invoice exists yet.
Does a delivery challan need a GSTIN field?
It helps to record both parties' GSTINs for your own records and for the e-way bill, but unlike a tax invoice there's no Rule 46 requirement forcing the field — see what Rule 46 actually requires for the contrast.
How BahiSathi handles it
BahiSathi is built for invoices and quotations, not goods-movement challans — so for now this template is the straightforward way to cover that case. Once the goods are actually sold, raise the tax invoice in BahiSathi as usual and note the challan number in your own reference for the return.
This is a format, not tax or logistics advice. E-way bill rules and thresholds change; confirm the current position with your accountant before relying on this.