Delivery Challan – Different Purposes & When to Use Them

✅ Delivery Challan – Different Purposes & When to Use Them

Below is a clear list of challan purposes with explanations:

1. For Job Work

Used when sending components to a job worker for:

  • Assembly

  • Fabrication

  • Processing

  • Machining

Reason to mention: “For Job Work”

2. For Erection / Installation / Commissioning

Used when sending goods to a customer site or workplace for:

  • Erection

  • Installation

  • Site work

  • Mounting / fixing

Reason: “For Erection at Site / For Installation”

3. For Repairs / Service

When goods are sent for:

  • Repair

  • Servicing

  • Maintenance

Reason: “For Repairs / Service Work”

4. For Return of Goods

When unsold or unused goods are returned.

Reason: “Sales Return” or “Return of Goods”

5. For Stock Transfer (Branch Transfer)

If items are moved from one branch/warehouse to another within the same GSTIN.

Reason: “Stock Transfer (Same GSTIN)”

If between different GSTINs, then it becomes a supply → Invoice needed (not DC).

6. For Exhibition / Demo

Goods carried temporarily to:

  • Trade fair

  • Exhibition

  • Customer demo

Reason: “For Exhibition / Demo (No Sale)”

7. For Testing / Quality Inspection

Goods sent to lab or another unit for:

  • Testing

  • Lab analysis

  • Quality inspection

Reason: “For Testing / QA Inspection”

8. For Sample Distribution

Goods given as:

  • Free samples

  • Marketing samples

Reason: “Sample Supply – No Sale”

9. For Delivery on Approval (DOSA)

Goods sent to customer for “approval before purchase”.

Reason: “Delivery on Approval – Section 31(7)”

10. For Temporary Movement of Tools / Machines

Used when moving:

  • Tools

  • Machinery

  • Equipment

  • Moulds

  • Dies

Reason: “Tools Sent – Not for Sale”

11. For Returning Job-Worked Goods

Job worker sends finished goods back to principal.

Reason: “Return After Job Work”

12. For Exhibition-Return / Demo-Return

To bring back items after exhibition/demo.

Reason: “Return from Exhibition / Demo”


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