SALE TRANSACTION AND EWAY BILL

[HITESH DEDHIA]

ABC Ltd is preparing invoice in following Manner.

Seller : ABC Ltd

Buyer (Billed to) : JKL Ltd

Consignee (Shiped to) : NOP Ltd

But ABC Ltd is not carrying Movement of Goods.

NOP Ltd will take delivery of Goods from ABC ltd and Sale the same to New party XYZ Ltd

NOP Ltd will prepare Eway bill to take material from ABC Ltd and deliver to XYZ ltd

Whether NOP ltd can prepare such eway Bill?

Whether ABC ltd have mandotory condition ot deliver goods in Bill to ship to Transaction?

any other issue in above transaction relating to ITC Credit to any one of Party?

Thanks.

[ABHISHEK TRIPATHI]

Dear Sir,

In the above scenario following supplies are involved as follows:

(i) ABC to JKL and,

(ii) JKL to NOP

As per the department's understanding vide press release dated 23.04.2018 only ABC or JKL can issue E-way Bill. Issuance of E-way Bill by NOP (as per R. 138) is little contentious, will suggest to avoid that at all.
You have to ensure the compliance of issuance of two invoices for the eligibility of ITC and other compliances of ITC.

Regards,

AT

[Mr Rao]

Dear querist,

As per the provisions of CGST, either ABC Ltd or JKL Ltd can generate e-way bill. NOC Ltd is mere a consignee of goods and hence he cannot prepare e-way bill.

AI Summary

E-way bill generation restricted to supplier or billed recipient; consignee must not generate it and invoices ensure ITC. E-way bill generation for the movement from ABC Ltd must be effected by either the supplier or the billed recipient; the consignee acting only as recipient should not generate the e-way bill. Separate invoices must be issued for the distinct supplies to preserve Input Tax Credit eligibility and meet documentary compliance for each supply.