Rule 55: The Five Situations That Need a Delivery Challan

Rule 55 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.

An invoice documents a supply. A great deal of goods movement is not a supply — and Rule 55 provides the document for it.

Rule 55(1): for the purposes of (a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known, (b) transportation of goods for job work, (c) transportation of goods for reasons other than by way of supply, or (d) such other supplies as may be notified by the Board, the consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of the invoice at the time of removal of goods for transportation.

The four heads, and what falls under each

(a) Liquid gas of unknown quantity at removal. Bulk gas dispatched by tanker where the delivered quantity is determined at the destination. The invoice follows once the quantity is known.

(b) Transportation of goods for job work. Goods sent by a principal to a job worker, between job workers, and back. Title does not pass, so there is no supply. Job work under section 143 →

(c) Transportation for reasons other than by way of supply. The residual and largest head:

• goods sent on approval or sale or return — Rule 55(1)(c) read with s.31(7); Goods sent on approval →
• goods sent for testing, calibration, repair or exhibition;
• inter-branch transfer within the same State under one GSTIN — not a supply, because it is the same person;
• goods sent to a weighbridge and back;
• capital goods sent out for repair and returned;
• movement to the supplier's own additional place of business;
• goods returned by a recipient to the supplier;
• goods moved for demonstration.

(d) Notified supplies. As specified by the Board.

The particulars

Rule 55(1) requires the challan to contain:

(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, Union territory or cess, where the transportation is for supply to the consignee; (viii) place of supply, in case of inter-State movement; and (ix) signature.

Note item (vii): tax particulars are shown only where the transportation is for supply to the consignee. A challan for job work or repair shows the taxable value for e-way bill purposes but no tax.

Triplicate, like an invoice

Rule 55(2): the delivery challan shall be prepared in triplicate, in the case of supply of goods, in the following manner:

• original for the consignee;
• duplicate for the transporter;
• triplicate for the consigner.

Rule 55(3): where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared in FORM GST EWB-01 — the e-way bill.

So a delivery challan does not replace the e-way bill. Where the movement crosses the value threshold, an e-way bill is required, and the challan number is declared in it.

Rule 55(4): knocked-down consignments

"Where the goods are being transported in a semi knocked down condition or in a completely knocked down condition or in batches or lots — (a) the supplier shall issue the complete invoice before dispatch of the first consignment; (b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice; (c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and (d) the original copy of the invoice shall be sent along with the last consignment."

This is the mechanism for plant, machinery and structures shipped in modules. It has an important interaction with s.16(2): the recipient's credit on that single invoice arises only on receipt of the last lot, under the first proviso to s.16(2). Goods received in lots →

Rule 55A: when there is no e-way bill

Rule 55A: the person in charge of the conveyance shall carry a copy of the tax invoice or the bill of supply issued in accordance with Rules 46, 46A or 49 in a case where such person is not required to carry an e-way bill under these rules.

So below the e-way bill threshold, or for an exempt movement, the document still travels. There is no category of goods movement that lawfully travels with nothing.

Practical notes

• Configure a challan series in the ERP, distinct from the invoice series, sixteen characters or fewer.
• Record the reason for movement on the challan — job work, repair, approval, exhibition. An officer's first question is why there is no invoice.
• Declare the challan in the e-way bill where one is required.
• For job work, tie the challan to the ITC-04 reporting and the s.143 return timelines.
• For approval sales, run the six-month ageing off the challan date. Goods sent on approval →
• For knocked-down supplies, ensure the original invoice travels with the last consignment, and certified copies with the earlier ones.

Key takeaways

• Rule 55 covers liquid gas of unknown quantity, job work, movement other than by way of supply, and notified supplies.
• The challan is serially numbered, sixteen characters or fewer, in one or multiple series.
• Tax particulars appear only where the transportation is for supply to the consignee.
• Triplicate — consignee, transporter, consigner.
• The challan does not replace the e-way bill; it is declared in it.
• Rule 55(4) governs knocked-down and batch consignments; Rule 55A requires the invoice or bill of supply to travel where no e-way bill is needed.

Read next

• Delivery Challan Under GST: When an Invoice Is Not Required
• Goods Sent on Approval: The Six-Month Rule
• Goods Received in Lots or Instalments
• ITC-04 and Goods Sent for Job Work

Disclaimer: Positions stated as on 5 September 2026, based on the CGST Rules as amended to 31 March 2026 (ICAI Bare Law, 12th edition) and the ICAI Handbook on Invoicing under GST (2025).