How Does The Challan And E-Challan System Process In India?
In this article, we can discuss the challan and e-challan process in India. Challan is one of the
official form or another kind of document, piece of paperwork, citation, etc. It is a process of
crediting the money to one’s bank account through a form, commonly used in India as a
receipt for payment or delivery. Another format of challan is e-challan. E-challan is one of
the electronic formats of the challan. Currently, many road accidents are caused in India as
traffic rules are not being followed. But, to ensure that a driver does not break any rule and it
also to secure the safety of other drivers on the road, the traffic challan has come into being.
What is challan?
A challan is an official text written on a piece of paper issued to a person in particular. A
challan is generally issued for ignoring traffic rules and regulation in India and it is also
following the neighboring countries. If a challan is issued in your name, you are liable to pay
the traffic police fine as mentioned in the motor vehicles act. A traffic police officer holds the
right to issue a challan in the name of any person who does not follow one or more traffic
Why use this challan?
This word, a challan is a document issued to a motor vehicle driver on violating the traffic
rules and regulations. The traffic police are given the right to issue a challan to a driver who
is not following the traffic rules while driving. A challan is also one of the tickets. It could
also be a delivery receipt or a token.
- Delivery challan
- Delivery challan is issued for delivery of goods in the following situations:
- Supply of liquid gas with quantity unknown to the supplier
- Transportation of goods for job work
- Transportation of goods when the transaction is not treated as supply
- Such other supplies as notified by the board.
- Delivery challan under GST
Delivery challan is the transportation of goods from one place to another. when the
transaction is not treated as supply under GST. The delivery challan is issued when you are
required to send goods or capital goods but GST is not applicable to that transaction.
How to use delivery challan?
The delivery challans let us also learn about how to use delivery challan. A prescribed format
has been provided by the government for a delivery note. Let us understand the step by step
procedure on how to use delivery challan for transportation of goods:
- Check whether the transaction is a supply or not
The first step is to check whether the transaction is supplied or not under GST. This is
because if the transaction is treated as supply under GST, then a proper tax invoice is
required to be issued. In other words, for those transactions which are not treated as supply
under GST, a delivery challan is required to be issued.
- Create delivery challan containing proper details
As per GST rules, the following are the requirements to be followed in every challan:
- Date and number of delivery challan
- Name, address, and GSTN of the seller
- Name, address, and GSTN of the buyer
- HSN code describing the goods being delivered
- Quantity of the goods
- The tax value of goods
- Tax rate and amount. State, central and integrated
- Place of supply and
These are the requirements necessary to be mentioned in the delivery challan
Create E-way bill
It is the most important point which you must not ignore. Any transfer of goods from one
place to another shall require e-way otherwise the goods may be liable to be confiscated.
Hence, kindly go through the complete concept of the e-way bill to properly send goods or
capital goods under GST.
Challan VS E-Challan
There are two ways by the challan which you can pay traffic in India:
How to pay traffic challan in India?
If you don’t need to go through the online traffic challan paying process, then you can opt for
paying challan at the nearest traffic police station in your area. In case you are caught for
violating a traffic rule, then you can ask the traffic police for your impending fines and can
clear them altogether. All your details are listed in the devices provided to the traffic police.
So, if you are a repeat offender or haven’t cleared your dues as yet and then do it now and
practice safe driving.
How to pay traffic e-challan in India?
- Firstly, you visit your state’s transport department website.
- You will search a section called e-challan payments or traffic violation payment.
- You see the option traffic violation payment section then click on the type of violation for
- which you are paying the fee.
- Next, enter the e-challan or vehicle registration number.
- Enter the unique captcha code
- Then, enter your card details, if paying through debit or credit card.
- Finally, you pay the fine and you will receive an SMS confirming your challan payment
- Types of challan (legal-illegal)
There are three types of challans that are generated and they are explained as follows:
This type of challan is generated online and the payment is also made online by Internet
Banking, Credit Card, Debit Card through the SBI e-Pay payment gateway.
This type of bank challan is generated online with the term GBSS printed on the challan. SBI
bank branches are guided to summon such challans through GRN only. Payments for GBSS
challans can be created in any SBI counter.
Manual challans are generated online and the term Treasury Linked Bank printed on the
challan along with Challan Number and Date. SBI bank branches are guided to summon such
challans through Challan Number in Treasury Application extended to SBI branches.
Payments method of such challans must be created only in the Treasury Linked SBI branch
of the concerned treasury.
What is e-challan?
An e-challan is an electronically generated challan document that is issued with the help
of Electronic Challan System. E-challan is an enterprise provided by the Government of
India with a goal to improve its services and secure transparency. Traffic violators can
now pay e-challan online or offline and it is depending on the service provided by their
state or city. E-challan process has supported the bribing process and it has removed the
use of any cash transactions.
Traffic challans are now provided swiping machines that enable them to generate a
printed challan on the spot when they catch hold of a traffic violator. The e-challan
generated also creates a real-time entry in the traffic police server. This service of using
the handheld machine creates the challan paying process easier. The fine is collected on
the spot. The violator has then issued a formal print stating the payment of the fine
TIN provides a facility to the taxpayers to inquire about the status of their challans over the
internet. Taxpayers can satisfy that your tax payment and it has been properly accounted for
in your name. The collecting banks can also use this facility to inquire about the status of the
challans uploaded by them. There are following below:
Challan Status Enquiry for Tax Payers
Taxpayers can track online the status of their challans deposited in banks. This offers two
kinds of search.
CIN based view :
On entering Challan Identification Number (CIN i.e. details such as BSR Code of Collecting
Branch, Challan Tender Date & Challan Serial No.) and amount (optional), the taxpayer can
view the following details:
- BSR Code
- Date of Deposit
- Challan Serial Number
- Major Head Code with description
- Name of Tax Payer
- Received by TIN
- Confirmation that the amount entered is correct
- TAN based view
- The taxpayer can see the following details :
- Major Head Code with description
- Minor Head Code
- Nature of Payment
- If the taxpayer enters the amount against a CIN, the system will confirm whether it
- matches with the details of amount uploaded by the bank.
Challan Status Inquiry for Banks
Tax collecting bank branches and the nodal branches can track online the status of their
challans deposited in banks.
There are follows :
Collecting Bank Branch :
The bank branch scroll date and the major head code such as description, the tax collecting
branch and it can access the total amount and a total number of challans for each major head
The collecting branch can view the following details:
- Challan Serial Number
- Challan Tender Date
- Name of Taxpayer
- Date of receipt by TIN
- Nodal Bank Branch
On providing the nodal scroll date and the major head code-description, the nodal branch can
view the following details:
- Nodal Branch Scroll Number
- Scroll Date
- Major Head Code – Description
- Total Amount
- Number of Branches
- Number of Challans
E Challan Payment Methode
Every state in India has a various website where people can go and pay their traffic challans.
You will see your state’s transport official website to pay a traffic challan.
Steps to pay traffic challan online
- First, visit your City’s official transport website.
- You will search a section dedicated to paying violation fines.
- You will be allowed to select if you want to pay violation notices, parking charges, or
- spot fines, or any other charges.
- Next, you choose on the appropriate link and you will be asked to enter certain details
- depending on the type of traffic violation.
- Commonly, you will be asked to enter your new vehicle registration number, old
- registration number, and your parking violation tag number.
- You enter the details and the current outstanding amount.
- You will be permitted to create the payment using your Master or Visa Card.
- Do not forget to enter the Captcha in the space provided and before clicking on the
- Submit button.
- You go to redirected to a safe page to make your payment.
- RTO challan
- The traffic police have introduced the CCTV-enabled e-Challan system in an attempt to
- eventually curb the rising number of road accidents in India.
- A CCTV camera continuously records footage of the ongoing traffic. If a motorist breaks
- any traffic rule, the act will be recorded in the footage.
- The police will try to extract the number from the vehicle’s screen-shot captured from the
- CCTV footage and the offense will be registered in the records.
- The traffic police will be then coordinate with the Regional Transport Office (RTO) to
- find the details of the vehicle and its owner.
- Details like the name and address of the vehicle owner, make and model of the vehicle, etc.
- The SMS will send a receipt and contain the time, date and location of the offense.
- Challan Corruption
- The police department to ensure good and non-corrupt governance has started yielding
- results in the city. The development was glaring following the enforcement of e-challans
- in the traffic and special branch wings.
- The citizen feedback system, which was started in 2015, also confirms that the number of
- complaints of corruption has come down significantly.
- The introduction of cashless enforcement, stopping of a vehicle only in the presence of an
- SI rank officer, enabling online payment options for traffic violators to pay their dues,
- putting an end to physical challan books and issuing e-challans have all contributed to the
- current development.
According to above all information related to challan. Many departments verify the e-challan
information from online reports and realize at their end without waiting for confirmation
from the treasury. The system thus enjoys dependency to a larger extent among taxpayer
community and departments and hence is sustainable for the longer term. In addition to this,auto tax helps you to automate all your GST compliances as it can be integrated with all
the leading ERPs easily.