Dispatch challan
/glossary/dispatch-challanDocument accompanying goods dispatch detailing items, quantities, and delivery information.
A dispatch challan is the packing list that leaves the Bartan Bazar yard with the truck. It lists sizes, lengths, piece count, heat numbers, and the PO reference. Under CGST Rule 138 a registered person generally raises an e-way bill when consignment value exceeds ₹50,000. Panki and Lucknow stores sign it on receipt. It is not the tax invoice.
In detail
A dispatch challan is the packing list that travels with a steel-pipe load. It records sizes, lengths, piece count, heat numbers, and the PO or invoice reference so the consignee can check the truck. Under GST it is distinct from the tax invoice. CGST Rule 55 allows a serially numbered delivery challan in lieu of an invoice for listed movements such as job work or non-supply transport; Rule 138 then uses that challan, or the invoice, to value the e-way bill. Buyers sign the challan on receipt as the count and condition record.
What a dispatch challan is, and what it is not
On this site the challan is the commercial packing list: items, quantities, dimensions, heat numbers, delivery point, and the order or invoice number. City and product pages call the same sheet a packing list. The consignee uses it to count bundles and to match heat stamps to the MTC.
It is not the tax invoice. The invoice creates the GST liability and carries HSN, taxable value, and tax. It is not the mill certificate. Chemistry and mechanicals live on EN 10204 3.1 or 3.2. It is not FORM GST EWB-01. The e-way bill is a movement document generated on the GST portal from the invoice, bill of supply, or delivery challan.
CGST Rule 55 is a narrower instrument. It lets the consigner issue a delivery challan, serially numbered not exceeding sixteen characters, in lieu of an invoice for (a) liquid gas whose quantity is unknown at removal, (b) job work, (c) transport for reasons other than supply, or (d) other Board-notified supplies. Sub-rule (2) requires three copies for a supply: ORIGINAL FOR CONSIGNEE, DUPLICATE FOR TRANSPORTER, TRIPLICATE FOR CONSIGNER. A sold truck of IS 1239 from Kanpur normally moves on a tax invoice plus a packing list, not on a Rule 55 challan in lieu of invoice.
Rule 55(4) covers the case where the supply is intended but the tax invoice could not be issued at removal: the supplier issues the invoice after delivery. Rule 55(5) covers SKD / CKD / batch lots: the complete invoice goes with the first consignment, later lots travel on challans that reference that invoice, and the original invoice travels with the last lot.
Who needs this pack, and who needs more
Every Kanpur-origin load needs a packing list the store can tick. PWD and JJM receivers match it to the BOQ page. Sugar-mill stores match heat numbers before the tubes enter a boiler bay. Hydraulic and printing-cylinder shops match ID, heat, and the roughness report, not only the piece count.
A Rule 55 delivery challan in lieu of invoice is for the listed non-invoice movements: job-work tubes sent to a hone shop, a yard-to-weighbridge hop, or a batch lot under 55(5). Do not use a Rule 55 challan as a substitute tax invoice on a completed sale.
Boiler lines need the IBR form for the actual component in the same envelope: Form III-A for steam pipes, Form III-B for tubes, Form III-C for boiler mountings and fittings. A packing list that says "IBR attached" without naming the form fails the inspector.
Tender packages that split across two PINs need two packing lists and, where Rule 138 applies, two e-way bills. One challan covering Lucknow and Prayagraj hides which site is short.
Challan versus invoice versus e-way bill
Keep the three papers distinct so a gate inspector and a project accountant read the same facts.
| Paper | Governs | Typical contents | Who signs / generates | When it travels |
|---|---|---|---|---|
| Packing list / dispatch challan | Count and identity | Size, length, pieces, heats, PO ref | Consignor issues; consignee signs receipt | With every load |
| Tax invoice | GST supply | HSN, value, tax, GSTINs | Supplier | With a taxable supply |
| FORM GST EWB-01 | Movement | Part A goods; Part B vehicle | Registered person causing movement | When Rule 138 applies |
| Rule 55 delivery challan | Movement without invoice | Rule 55(1) fields, 16-character number | Consigner, in triplicate | Job work, non-supply, 55(4)/55(5) |
| MTC 3.1 / 3.2 | Mill evidence | Heat, chemistry, mechanicals | Mill; 3.2 countersigned | With the ordered heats |
Rule 138 Explanation 2 values the consignment from the invoice, bill of supply, or delivery challan, including tax, and excludes the exempt portion of a mixed invoice. The packing-list piece count must still match that document.
How to specify the dispatch pack on an RFQ
List each paper. "Complete quality papers" is how a Lucknow store opens a crate and finds no heat list.
- Packing list: size, class or wall, length, piece count, bundle IDs, heat numbers, PO and invoice numbers, consignee PIN.
- Tax invoice: buyer GSTIN, place of supply, HSN, taxable value. Budget 18% extra on the invoiced steel value.
- E-way bill: who generates FORM GST EWB-01; vehicle Part B update at the gate.
- MTC: EN 10204 3.1, or 3.2 if TPI is named. Heat on the stencil equals heat on the challan.
- IBR: Form III-A, III-B, or III-C by component. TPI release if SGS, Bureau Veritas, Lloyds, or TUV is on the ITP.
- Weighbridge slip and, for GI, the coating record. End-protection and bundle-separation notes for mixed trucks.
- Receipt: named person at the site, photo rule for visible damage, rejection note path.
Worked pack example for 65 NB Medium
Take 80 lengths of 6 m IS 1239 Medium, 65 NB. Compute mass with W = (OD − t) × t × 0.02466 kg/m. The class chart uses OD 76.1 mm and Medium wall 3.6 mm, so W = (76.1 − 3.6) × 3.6 × 0.02466 = 72.5 × 3.6 × 0.02466 = 6.44 kg/m. The weight table lists 38.6 kg per 6 m. Eighty lengths are 80 × 38.6 = 3,088 kg (3.088 MT).
The MS ERW price list band for 65 NB Medium is ₹53-59 per kg ex-warehouse Kanpur as of 24 May 2026. Invoice steel value is 3,088 × 53 = ₹1,63,664 to 3,088 × 59 = ₹1,82,192 before tax. That value is above the general Rule 138 threshold of ₹50,000, so an e-way bill is in the pack unless an exemption in the rule applies. The challan line is 80 pieces × 6 m, 65 NB Medium, with each heat listed.
The store at receipt counts 80 pieces, samples OD 76.1 mm and wall 3.6 mm, and matches heat stamps to the MTC. A short count becomes a rejection note against those heat numbers, not a vague "bundle missing" email.
Common challan mistakes on Kanpur loads
In practice, the first error is a challan that says "MS pipe" while the invoice says IS 1239 Medium, 65 NB. The gate may pass. The PWD store will not. Copy the PO description onto all three papers.
The second error is heat numbers on the MTC that never appear on the packing list. Once pipe is cut or painted, identity is harder to prove. Read the MTC at the yard, not after the truck is on NH-19.
The third error is one challan for two consignees. JJM multi-village drops need separate invoices and e-way bills per consignee when the BOQ splits sites. The ERW cluster already flags that split.
The fourth error is treating a signed challan as a waiver of latent defects. The signature records count and visible condition. Chemistry still lives on the MTC. A later wall-thickness fail still follows the PO remedy.
The fifth error is a Rule 55 challan used as the only paper on a completed sale. Rule 55 is for the listed movements. A taxable supply needs the invoice. Rule 55(3) still sends that challan into Rule 138 when it is the movement document.
GST Rule 55 and Rule 138
Rule 55(1) fields are date and number; consigner name, address, and GSTIN; consignee name, address, and GSTIN or UIN if registered; HSN and description; quantity (provisional if unknown); taxable value; tax rate and amount where the movement is a supply; place of supply for inter-State movement; and signature.
Rule 138 requires a registered person to furnish movement information before taxable goods move, generally when consignment value exceeds fifty thousand rupees. The transporter must generate EWB-01 for an inter-State supply if neither consignor nor consignee has, and the conveyance aggregate exceeds that value, except railways, air, and vessel. A consolidated EWB-02 is available on the portal.
Rule 138 exemption (n) covers a movement up to twenty kilometres from the consignor's place of business to a weighbridge and back, if a Rule 55 delivery challan accompanies the load. That is the Bartan Bazar-to-weighbridge hop, not a Lucknow delivery.
Uttar Pradesh intra-state e-way-bill notifications can add or relax conditions. Check the movement actually being made. The GST Council e-way-bill note (5 August 2019 PDF on gstcouncil.gov.in) is the council-hosted explainer already cited on the freight guide.
Dispatch from Kanpur: challan, invoice, and vehicle
Loads leave 83/124, Steel Market, Bartan Bazar, Afim Kothi, Basanti Nagar, Juhi, Kanpur 208014. Intra-city drops to Fazalganj, Chakeri, Panki, Dada Nagar, and Jajmau still carry a packing list. Outstation trucks to Lucknow, Agra, Patna, and the other city routes carry the same list plus the e-way bill when Rule 138 applies.
The homepage restates the FAQ service area: Uttar Pradesh, Bihar, Madhya Pradesh, Delhi NCR, and Uttarakhand. The challan does not promise a transit hour. It records what left the bay. The carrier quote and the PO state the delivery window.
Mixed ERW and precision loads need separated cradles and a bundle-wise list so a honed mouth is not counted as a water-pipe piece. The FAQ 9-30 MT range is a truck-planning reference only. The vehicle on Part B of EWB-01 is the one that actually reports.
See quality, MTC sample, and Kanpur steel market. Steel pipes in Kanpur and MS ERW in Kanpur use the same desk.
Heat numbers, MTC, and IBR in the same envelope
The stencil, the packing list, and the mill certificate must show one heat. The quality cluster on this site tells buyers to read the MTC at the yard, not after the truck is on NH-19 or NH-27. For PWD and Jal Jeevan Mission lots, keep the certificate with the weighbridge slip and packing list in the project file.
RP Sales already ships an MTC with each dispatch. The challan's job is to point at those heats. A Type 3.2 countersignature or a TPI release is a second sheet, not a replacement packing list.
IBR identity is component-specific. A steam-pipe heat takes Form III-A. A boiler-tube heat takes Form III-B. A safety-valve or gauge-glass line takes Form III-C. Putting Form III-C on a tube heat is the wrong form even if the challan quantity is correct.
Receipt, rejection notes, and proof of delivery
The FAQ inspection block lists five checks: count pieces against the packing list; sample OD and wall; match identifiers to the certificate; compare BIS marks where they apply; and verify the correct IBR form. Photograph visible transit damage before unloading changes the evidence. Keep the transporter acknowledgement with any claim.
A rejection note names the non-conformance, the heat, and the disposition (return, replace, or scrap). It references the challan number so the yard can isolate the bundle. Do not unload a disputed bundle into project stock.
UCP 600 Article 27, already cited on the LC page, treats a transport document as unclean if it declares a defective condition of goods or packing. A rejection note on the truck is not a clean presentation if the payment is by LC. For open-account jobs the PO remedy still controls.
Multi-site PWD and JJM splits
One PO can feed three village drops. Split quantity, PIN, required date, and unloading method on the RFQ. The yard can still load one vehicle, but each consignee gets a packing list and, where required, its own invoice and e-way bill. City pages for Prayagraj note that GST address fields accept the post-rename city; the challan should use the name the work order uses.
Sugar-mill shutdowns may need the challan to list cut lengths against a replacement schedule. Hydraulic shops may need per-tube IDs. Printing-cylinder shops need the bore report in the same envelope. Write those extras as lines, not as a remark on the last page.
Unnao (18 km) and a rural JJM PIN past Unnao are different consignees. Do not reuse a Kanpur-city challan address on the Unnao drop. Steel pipes in Unnao and GI pipes in Kanpur stay on their own routes when the product changes.
Where you'll meet this in procurement
You will meet Dispatch challan when setting commercial and logistics terms. Spell out Dispatch challan on the RFQ or PO so price, quantity, delivery point, and lead time are comparable across suppliers and disputes at dispatch are avoided.
Related terms
Related resources
Key points
- The commercial challan is the packing list: size, count, heats, PO reference. It is not the tax invoice and not the MTC.
- CGST Rule 55 is the delivery challan in lieu of invoice for listed movements, prepared in triplicate, serial number not exceeding sixteen characters.
- CGST Rule 138 generally requires FORM GST EWB-01 when consignment value exceeds ₹50,000, subject to exemptions and state intra-state rules.
- Heat on the stencil, the packing list, and the MTC must match. IBR forms follow the component: III-A pipes, III-B tubes, III-C mountings and fittings.
- A 65 NB Medium lot of 80 × 6 m is 3.088 MT. Sign the challan for count and visible condition; latent defects still follow the PO.
Frequently asked questions
Sources
- CGST Rule 55. Transportation of goods without issue of invoice: delivery-challan fields, triplicate copies, Rule 138 declaration, invoice-after-delivery, SKD/CKD/batch lots (Central Board of Indirect Taxes and Customs)
- CGST Rule 138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill; consignment value; transporter duty; weighbridge exemption (n) (GST Council, Government of India)
- GST Council e-way bill note. Electronic way bill, 5 August 2019 explainer (₹50,000 threshold and exemptions) (GST Council, Government of India)
- Indian Boiler Regulations, 1950. Forms index: III-A steam pipes, III-B tubes, III-C boiler mountings and fittings (Central Boilers Board, Government of India)
- EN 10204:2004. Metallic products. Types of inspection documents (European Committee for Standardization (CEN))