What it means
Goods do not always move because of a sale. Rule 55 allows a delivery challan instead of an invoice for job work, for goods moved for reasons other than supply, when the quantity is not known at removal (such as liquid gas), and for other supplies the Board notifies. It shows: challan number and date; the consigner’s and consignee’s names, addresses and GSTINs; HSN and description; quantity; taxable value; tax rate and amount where the move is a supply; place of supply for inter-state moves; and a signature. It is made in three copies.
Example
Kaveri Agencies, Mysuru sends 500 brass blanks worth ₹2,40,000 to a polishing job worker in Hosur, Tamil Nadu, on challan KA-DC/26-27/031 dated 4 Nov 2026. No tax is charged because nothing is sold. Because this is an inter-state job-work move, an e-way bill is needed, and the polished goods must come back within one year.
Common mistakes
- Using a delivery challan for an actual sale to save time, then never issuing the invoice.
- Moving goods on a challan without the e-way bill when one is needed.
- Not tracking challans sent for job work, so goods that never came back are not taxed when the time limit passes.
In MyRecords
A stock transfer prints as a delivery challan laid out under rule 55 (or a transfer note), with the e-way bill upload file when one is needed. Goods sent to a job worker go on a job work challan, subcontracting tracks what came back, and an ITC-04 register lists goods sent to and received from job workers. Use our free delivery challan template if you are not on MyRecords yet.