Rule 45 and Rule 55: The Job Work Delivery Challan

Rule 45 and Rule explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

The delivery challan is what allows goods worth crores to move without an invoice and without tax. It is also the only document tying those goods back to their owner — which is why the rules about who may issue it, who may endorse it, and when a fresh one is needed are unusually precise.

Rule 45(1) — inputs, semi-finished goods or capital goods go to the job worker under the cover of a challan issued by the principal, including on a direct despatch; where goods move job worker to job worker, the challan may be issued by either the principal or the sending job worker. Two provisos, inserted by Notification No. 14/2018-CT dated 23.03.2018, allow the principal's challan to be endorsed by a job worker, and that endorsed challan to be further endorsed by another. Rule 45(2) applies the rule 55 particulars. The challan is prepared in triplicate. An inter-State job work movement needs an e-way bill irrespective of value — third proviso to rule 138.

Who issues it, and who may endorse it

The Handbook sets out the four movements:

(i) Principal to job worker. "The principal shall prepare delivery challan in triplicate, two copies of which may be sent to the job worker along with goods. The job worker should send one copy of the said challan along with the goods, while returning them to the principal."

(ii) One job worker to another. "Goods may move under the cover of a challan issued either by the principal or the job worker. Alternatively, the challan issued by the principal may be endorsed by the job worker indicating the quantity and description of goods being sent."

(iii) Job worker back to the principal. "The job worker should send one copy of the challan received by him from the principal."

(iv) In piecemeal by the job worker. "The challan issued originally by the principal cannot be endorsed and a fresh challan is required to be issued by the job worker."

The fourth is the one that catches people. A single consignment returned in three part-loads cannot ride back on three endorsements of one challan — the job worker must issue his own fresh challans. The Handbook repeats it: "If the goods are sent in piecemeal quantities by a job worker to another job worker or to the principal, the challan issued originally by the principal cannot be endorsed and a fresh challan is required to be issued by the job worker."

The endorsement chain is limited too. Rule 45(1)'s two provisos permit the principal's challan to be endorsed by a job worker, and that endorsed challan to be further endorsed by another job worker — each endorsement "indicating therein the quantity and description of goods". Beyond that, a fresh challan is the safer course.

The nine particulars

Rule 45(2) applies rule 55, under which the consigner may issue a delivery challan in lieu of invoice at the time of removal of goods for transportation, serially numbered not exceeding sixteen characters, in one or multiple series, containing:

• (i) date and number of the delivery challan;
• (ii) name, address and GSTIN of the consigner, if registered;
• (iii) name, address and GSTIN or UIN of the consignee, if registered;
• (iv) HSN code and description of goods;
• (v) quantity — "provisional, where the exact quantity being supplied is not known";
• (vi) taxable value;
• (vii) tax rate and tax amount — central, State, integrated, UT tax or cess — "where the transportation is for supply to the consignee";
• (viii) place of supply, in case of inter-State movement; and
• (ix) signature.

Limb (vii) is conditional, and that matters. A job work movement is not a supply to the consignee, so the tax columns are not required to be filled — but the taxable value in limb (vi) is, and it is that declared value which becomes the value of the deemed supply if the goods never come back. Time limits and the deemed supply →

Limb (v) helps in practice. Where a quantity cannot be exactly determined at removal — bulk material, liquids — a provisional quantity is permitted.

Triplicate, and who gets which copy

Rule 55(2), in the case of supply of goods:

• Original — marked ORIGINAL FOR CONSIGNEE;
• Duplicate — marked DUPLICATE FOR TRANSPORTER;
• Triplicate — marked TRIPLICATE FOR CONSIGNER.

Rule 55(3): where goods are transported on a delivery challan in lieu of invoice, "the same shall be declared as specified in rule 138" — that is, in the e-way bill.

Rule 45 also covers the two other job work situations the Handbook lists. Under rule 55(1), a delivery challan may be used for supply of liquid gas where the quantity at removal is unknown, for transportation of goods for job work, for transportation for reasons other than by way of supply, and for other supplies notified by the Board.

The e-way bill: no threshold for inter-State job work

"As per the third proviso to Rule 138 of the CGST Rules, 2017 it is compulsory that when the principal and the job worker are situated inter-State, job work transactions, e-way bill must be generated for inter-State movement of goods irrespective of the monetary limit."

So the ₹50,000 consignment value threshold does not apply to an inter-State job work movement. A small tooling consignment or a sample batch crossing a State line still needs an e-way bill.

Note who can generate it. For inter-State job work movement, the e-way bill may be generated by the principal or the registered job worker, irrespective of value.

Direct despatch: the invoice, the challan and the Bill of Entry

Circular No. 38/12/2018 deals with goods that never reach the principal's premises:

"goods may be moved from the place of business of the supplier to the place of business/premises of the job worker with a copy of the invoice issued by the supplier in the name of the principal wherein the job worker's name and address should also be mentioned as the consignee, in terms of rule 46(o) of the CGST Rules, 2017. The buyer (i.e., the principal) shall issue the challan under rule 45 and send the same to the job worker directly."

And for imports: "In case of import of goods by the principal, which are then supplied directly from the customs station of import, the goods may move from the customs station of import to the place of business/premises of the job worker with a copy of the Bill of Entry, and the principal shall issue the challan under rule 45 and send the same to the job worker directly."

Two documents travel, not one. The vendor's invoice (or Bill of Entry) naming the principal as buyer and the job worker as consignee, and the principal's rule 45 challan. Rule 45(1) is explicit that the challan is required "including where such goods are sent directly to a job-worker", and the Handbook repeats it: "Delivery challan is required even if such inputs / capital goods are sent directly to a job-worker."

Reporting the challans

In GSTR-1. "Details of delivery challan generated by the principal for the job work are also required to be furnished in Form GSTR-1."

In ITC-04. Rule 45(3) requires the details of challans in respect of goods dispatched to and received from a job worker during a specified period to be included in FORM GST ITC-04. ITC-04 and the specified period →

The Handbook offers a format note for anyone building one: "For the format of job work challan, the format of e-sugam prescribed by the Government of Karnataka or e-way bill may be referred." Its own Annexure B sets out a delivery challan carrying the company details, CIN and GSTIN, consignee details, place of supply, the three copy markings, and a table of description, HSN, quantity, taxable value and the tax columns.

Key takeaways

• The principal issues the challan, including on a direct despatch from the vendor.
• Triplicate: consignee, transporter, consigner — two copies go with the goods, one comes back.
• Job worker to job worker: challan by either party, or the principal's challan endorsed; a second further endorsement is permitted — Notification No. 14/2018-CT.
• Piecemeal returns cannot be endorsed — the job worker issues fresh challans.
• Nine particulars under rule 55, with the tax columns only where the transportation is for supply, and provisional quantity permitted.
• E-way bill for inter-State job work at any value — third proviso to rule 138.
• On a direct despatch, the vendor's invoice names the job worker as consignee under rule 46(o), and the principal still issues the rule 45 challan; for imports, the Bill of Entry plays the invoice's role.
• Challans are reported in GSTR-1 and in ITC-04.

Read next

• ITC-04: The Specified Period and the ₹5 Crore Split
• Section 143: The Job Work Procedure, Clause by Clause
• Job Work Time Limits, Deemed Supply and the Commissioner's Extension

Disclaimer: Positions stated as on 5 September 2026, based on rules 45, 46(o), 55 and 138 of the CGST Rules, 2017, Notification No. 14/2018-Central Tax dated 23 March 2018 and Circular No. 38/12/2018-GST, as reproduced in the ICAI Handbook on Job Work under GST (4th edition, June 2026).