Not every truck leaving your godown carries a sale. Goods go for job work, to your own branch, to a customer on approval, to an exhibition — and each of those needs a delivery challan rather than a tax invoice, plus an e-way bill above the threshold. Search interest in "delivery challan format" and "e-way bill limit" peaks every festive season when stock moves fastest.
Invoice or challan?
| Movement | Document |
|---|---|
| Sale to a customer | Tax invoice (or bill of supply) |
| Goods sent for job work and return | Delivery challan |
| Transfer between your own branches (same GSTIN) | Delivery challan |
| Transfer to a branch with a different GSTIN (another state) | Tax invoice — it's a supply |
| Goods on approval / sale-or-return | Delivery challan; invoice when accepted (or after 6 months) |
| Exhibition / demo | Delivery challan |
| Supply in multiple lots against one invoice | Invoice with the first lot; challans for the rest, referencing it |
| Liquid gas where quantity is unknown at dispatch | Delivery challan; invoice after delivery |
The delivery challan tool produces the Rule 55 format with vehicle, driver, LR and e-way bill fields.
Delivery challan contents (Rule 55)
Serial number (max 16 characters, one series per FY); date; consignor's name, address, GSTIN; consignee's details; HSN and description; quantity (provisional if unknown); taxable value; tax rate and amount where the movement is a supply (e.g. for approval-basis goods); place of supply for inter-state; signature. Three copies: original for consignee, duplicate for transporter, triplicate for consignor.
E-way bill: the essentials
- Required for movement of goods worth more than ₹50,000 (invoice value including tax) — per consignment, in a vehicle.
- Generated on ewaybillgst.gov.in by the supplier, recipient or transporter, before movement begins. Part A has the invoice details; Part B the vehicle number.
- Some states set lower thresholds for intra-state movement (e.g. ₹1 lakh in several states, but others have kept ₹50,000; some exempt certain goods) — check your state.
- Not required for: non-motorised conveyance, goods exempt from GST, movement within 50 km for a transporter's weighment, and a specific list of exempt goods (LPG, kerosene, jewellery under certain conditions…).
Validity
| Distance | Validity |
|---|---|
| Up to 200 km | 1 day |
| Every additional 200 km | +1 day |
| Over-dimensional cargo | 1 day per 20 km |
Validity can be extended within 8 hours before or after expiry if the consignment is in transit. A Part B vehicle number can be updated any number of times.
Penalties for movement without an e-way bill
Detention under Section 129: penalty of 200% of the tax (or 2% of value for exempt goods) if the owner comes forward; higher otherwise. Goods and vehicle are held until paid. This is the single most expensive routine GST mistake — a ₹5 lakh consignment at 18% GST means ₹1.8 lakh in penalty.
Practical tips
- For job work, the challan value is the value of goods; no tax is charged, but the challan must say "for job work".
- Goods returned by a job worker need a challan from their side (or an endorsement on yours).
- Keep e-way bills with the transporter's LR; the driver must show them on demand. A printed 4×6 label with the e-way bill number on the outer carton helps at checkpoints.
- Check volumetric weight for courier shipments — freight is charged on the higher of actual and volumetric (calculator).
- For approval-basis goods across states, the challan must carry tax details and an e-way bill; issue the invoice within 6 months or the movement is deemed a supply.
FAQ
Do I need an e-way bill for a ₹40,000 consignment?
Not under the ₹50,000 central threshold, unless your state has notified a lower limit for intra-state movement.
Can I generate an e-way bill on a delivery challan?
Yes. Select "Outward – Job work / Others" and enter the challan number as the document.
Is a delivery challan valid for transporting goods sold?
No — a sale needs a tax invoice. Using a challan to move sold goods and invoicing later is treated as evasion.
Who is liable if the transporter didn't carry the e-way bill?
The person in charge of the conveyance must carry it, but the penalty is recovered from the owner of the goods (supplier or recipient).