Delivery challan
The document that accompanies goods moving without a tax invoice — job work, stock transfers, approval sales or goods sent for repair.
Some goods move before they are sold, or without being sold at all. A delivery challan is the document that travels with them, recording what is going where and why, without charging tax.
When you need one
Goods sent for job work. Transfers between your own godowns or branches. Goods sent on approval or on a sale-or-return basis. Items going out for repair or demonstration. Supply of liquid gas where the quantity is not known at dispatch.
What it should show
The serial number and date, your details and the consignee's, a description of the goods with HSN, quantity, taxable value, the place of supply, and the reason for the movement. Where an e-way bill is required for the consignment, the challan is the reference document for it.
It does not replace the invoice
When the transaction becomes a sale — the approval is confirmed, the job work returns and is billed — a tax invoice still has to be issued. The challan is the movement record, not the tax document.
How KillStock handles it
Delivery challans are raised as their own document type, with the goods and the reason recorded, and stock transfers between locations are tracked with a receipt against the transfer at the far end.
A common mistake
Sending goods on approval with a proforma invoice and no challan. If the vehicle is checked, an unpriced quotation is not the document that was asked for.