Guide · Documents
Lorry receipt, consignment note, bill of lading, challan: which is which?
Five documents travel with goods in India and they are often confused. Here is what each one is, who issues it, and when a road transporter needs it.
Lorry receipt (LR) and consignment note
A lorry receipt is issued by a road transporter when it accepts goods for carriage. It records the consignor, consignee, origin, destination, packages, weight, freight and the terms of carriage. In practice, lorry receipt, consignment note, bilty and goods receipt (GR) are the same document under different names; the Carriage by Road Act, 2007 uses the term consignment note.
What a lorry receipt must show
| Field | Why it matters |
|---|---|
| LR number and date | Unique reference used on the e-way bill, POD and freight bill |
| Consignor and consignee, with GSTIN | Who handed over and who receives; GST compliance |
| From and to | Route and distance, which drive e-way bill validity |
| Packages, description, weight | The basis for claims if goods are short or damaged |
| Invoice or challan number and value | Links the LR to the supplier’s documents and the e-way bill |
| Vehicle number | Must match Part-B of the e-way bill |
| Freight and terms | Paid, to-pay or to-be-billed; decides who pays and when |
| Signatures and remarks | Acknowledgement at loading and delivery |
LR copies
An LR is usually made in several copies: one for the consignor, one for the consignee that travels with the goods, one for the driver or vehicle, and one kept by the issuing office. Digital LRs replace the paper copies with a PDF or link, but the roles stay the same.
The legal basis
Under the Carriage by Road Act, 2007, the consignor gives the carrier a goods forwarding note, and the common carrier issues a goods receipt, which is what the trade calls the lorry receipt or bilty.
IBA-approved transporters
Banks that finance trade often ask for the LR of a transporter approved by the Indian Banks’ Association. If your customers sell on bank finance, that approval and a consistent LR format matter.
Bill of lading
A bill of lading is the equivalent document for goods carried by sea (and in multimodal shipments). Unlike a domestic LR, a bill of lading is usually a document of title: whoever holds it can claim the goods, which is why it is used with letters of credit in trade. A road transporter in India normally issues an LR, not a bill of lading.
Delivery challan
A delivery challan is a GST document issued by the supplier, not the transporter, when goods move without a tax invoice: for example goods sent for job work, on approval, or between branches. It travels with the goods alongside the LR.
E-way bill
An e-way bill is the electronic GST document generated on the government portal for the movement of goods above the notified value. Part-A carries the invoice or challan details; Part-B carries the vehicle. The transporter must keep Part-B correct whenever the vehicle changes. Rules and thresholds are published on the NIC e-way bill portal.
Side by side
| Document | Issued by | Purpose | Mode |
|---|---|---|---|
| Lorry receipt / consignment note / bilty | Road transporter | Proof the transporter received the goods; terms of carriage | Road |
| Bill of lading | Shipping line or carrier | Receipt, contract and usually document of title | Sea, multimodal |
| Delivery challan | Supplier | Movement of goods without a tax invoice | Any |
| Tax invoice | Supplier | Sale of goods with GST | Any |
| E-way bill | Supplier, recipient or transporter | GST compliance for goods in movement | Any |
Keeping them connected
The documents are separate, but the data is the same. SCM for Transporter makes the LR once and drafts the e-way bill, POD check and freight bill from it, so the five documents never disagree. Read more in what to look for in bilty software.
Questions
Is a lorry receipt a document of title?
A domestic lorry receipt is mainly an acknowledgement of goods and a record of the carriage terms. Bills of lading are the documents normally used as documents of title in trade; take legal advice for a specific case.
What is the full form of LR in transport?
LR stands for lorry receipt, the document a road transporter issues for goods it accepts for carriage. It is also called a bilty, goods receipt (GR) or consignment note.
Who issues a delivery challan, the transporter or the supplier?
The supplier issues the delivery challan. The transporter issues the lorry receipt.
Does a road transporter need a bill of lading?
Usually not. Domestic road carriage in India uses a lorry receipt or consignment note; bills of lading are used for sea and multimodal shipments.
See it on your own data. SCM for Transporter runs the bilty, e-way bill, trips, billing and accounts in one system. Book a 30-minute working session with an engineer.