A delivery challan is simply a document stating what goods have been delivered to

whom, where on what date. In some cases, even basis of deliver like (Sale/Br transfer/
Sale or return) etc. are mentioned.

An invoice on the other hand indicates the value of goods delivered, and acts as a legal
proof of ownership on the goods. Mere delivery challan is not proof of ownership.

Delivery challan indicates that the goods have been delivered and acknowledged by
customer as received. While Invoice means that the customer accepts the ownership of
the goods, and all rights, risks and liabilities involved in them.

However many a times, both delivery challan and Invoice can be merged and termed as
“Tax invoice cum delivery challan”

Another point of difference is that delivery challan may or may not include the value of
goods, but it never states tax charged to customer. But a TAX INVOICE always shows a
tax breakup for taxes charged on goods sold.