Delivery Challan is a crucial document required during the transit of goods from one location to another. If your business involves the frequent shipment of goods, then you must consider having billing software that makes your delivery challan creation process simple and effortless.

Here is a detailed guide on delivery challan and its importance, GST rules for creating a challan and the advantages of using billing software to create challans.

Delivery Challan & Its Importance

Delivery Challan, also known as a dispatch note or delivery note, is a document generated while transporting goods from one place to another. The person transiting the goods typically carries the challan, which contains the shipment details, including the description of goods, quantity, value, and destination. A delivery note usually serves as proof of delivery.

Delivery challans are typically used in business-to-business transactions, while goods are transported from one business location to another. They help businesses ensure that goods are delivered to the right place in the right quantities to avoid discrepancies that might arise during the shipping process.

Delivery Challan Under GST

According to Rule 55 of the Central Goods and Services Tax (CGST) Act relating to ‘Transportation of Goods without issuing an invoice’, the consignor must issue a delivery challan in case of - 

  • Supplying liquid gas where the quantity is unknown

  • Transporting goods for job work

  • Transporting goods for reasons other than by way of supply

The Rule also prescribes the details that must be included in a delivery note.

Details to Include in a Delivery Challan

  • Must have a 16-character serial number in one or multiple series

  • It must contain - 

- Date

- Name, address and GSTIN of the consignor

- Name, address and GSTIN of the consignee

- HSN code and description of goods 

- Quantity

- Value of goods

- Respective tax rates

- Place of supply and

- Signature of the sender

The Rule also specifies that three copies of the delivery challan must be prepared. The original copy is for the consignee, the duplicate is for the transporter, and the triplicate is for the consignor.

Ways to Generate Delivery Challans

If you have a business, which buys and sells goods, you might be transporting them from one place to another for various reasons. In all such cases, which do not involve the sale of goods, you must create a delivery challan as per the tax regime.

Here are the different methods to create a dispatch note:

 

  • Use a Word Doc or Spreadsheet: You can use either Word or Excel to create a delivery challan. Take a blank document, insert rows and columns to fill the required fields, and add headers like customer name, address, description of goods, quantity, etc., and save it. Whenever you need to create a challan, either fill in the fields on your PC or take a printout of the document and fill it out manually.

 

 

  • Use a Template: You will find many pre-designed templates online. You can download any one of the templates and use it whenever necessary. This is a quick and easy way to create a dispatch note without creating it from scratch.

 

 

  • Use a Delivery Management System: Delivery management systems are typically used by businesses involving a lot of transportation. If you have such a system, it will have built-in functionality to generate the challans.

 

 

  • Use Billing Software: Billing software is designed to automate invoicing by creating different invoices. This simple and easy-to-use software helps businesses of all sizes streamline their billing and accounting processes.

 

Billing Software to Generate Delivery Challans

Manually creating delivery challans is time-consuming and might also lead to errors in invoicing. Entering the prices of each and every item, tax details, calculating the total value of the shipment, etc., are a little tricky to execute. On the other hand, having a delivery management system is not a feasible option for all businesses.

In such instances, businesses can have billing software that would help them create invoices of all sorts. Here are several advantages of using billing software to generate dispatch notes.

  • Improved Efficiency: Automates the entire invoice generation process, thus saving time and effort.

  • Accuracy: Ensures that the challans are accurate and error-free. The software auto-populates the required fields, such as the GST, total value, and item code, based on the data entered into the system.

  • Faster Processing: The challans can be created and processed faster than manual methods. Challans can be generated instantly, meaning the delivery can be processed without delay.

  • Improved Record-Keeping: Maintains a record of all the generated challans, making it easier to track shipments and manage inventory.

  • Customisation: You can customise invoices by adding a business logo, choosing a layout, and including additional information.

  • Integration with Other Systems: Billing software can be integrated with other systems, such as inventory management systems and accounting software, which makes it easier to manage and track all aspects of the business.

A billing software thus helps in creating delivery challans quickly and effortlessly. It further helps streamline business operations, saves time and improves accuracy.