Bill To Ship To Model and Ex - Works Contract

[Kaustubh Karandikar]

XYZ (Registered in Gurgaon) is supplying the goods to PQR (Registered in Maharashtra). XYZ is giving the delivery to PQR at Gurgaon since the contract is ex – works. PQR is arranging his own transporter for taking the delivery from Gurgaon and the goods are delivered to the customer of PQR at Chennai. In my view, XYZ will issue Invoice on PQR by charging IGST but will not prepare E – Way Bill since goods handed over to PQR at Gurgaon. PQR in turn will issue Tax Invoice and E – Way Bill in the name of his customer at Chennai by charging IGST. The truck from Gurgaon will accompany the Invoice and E – Way bill of PQR. Is my understanding correct?

[Shilpi Jain]

Either PQR or XYZ can issue the e-way bill. This is as per a press release for bill to ship to relating to e-way bill dated 23.4.2018.

AI Summary

E-way bill can be generated by either supplier or recipient in bill-to-ship-to ex-works supplies; IGST applies. In a bill-to-ship-to ex-works arrangement the supplier invoices the buyer and IGST applies; transfer of possession at the supplier's premises does not change IGST treatment. Either the supplier or the recipient may generate the e-way bill to accompany the goods when the buyer arranges transport from the supplier's premises to a third-party consignee.