Regarding Bill to and ship to

[VIRENDER KUMAR]

Sir,

I have one query that my client in Delhi and he want to sale in UP goods ₹ 75000/- but his buyer told him that the goods delieverd directly in Delhi then Please confirm CGST and SGST or IGST in Bill and Eway will be made or not Please confirm

[KASTURI SETHI]

Suppose the supplier is A in Delhi and the buyer is B located in UP and the consumer/final customer (where goods are to be delivered) is C. B directs A to deliver the goods to C in Delhi. B will also raise invoice charging IGST to C. Although the goods are to be delivered in the same State/city, yet IGST is applicable As per Section 10(1)(b) of IGST Act, the place of supply will be UP. It will be inter-State supply. Hence IGST applicable.

Only one E-way bill has to be issued. Either by B or A. For an illustration and clarity you may read press release dated 23.4.2018 issued by CBIC.

[Shilpi Jain]

Yes it will be IGST as the goods are delivered outside the State and e way bill is required as there is movement of goods and if there is no exemption from generation of e way bill.

[RAMASWAMY Advocate]

yes, the experts opinion in the matter seems to be correct in my view.

[Ganeshan Kalyani]

'A' can raise invoice with IGST as 'Bill To' 'B' in UP and 'Ship To' 'C' in Delhi. In EWB also there is 'Bill To' 'Ship To' option. Same can be selected as stated for invoice. And, 'B' will be raising invoice on 'C' with IGST and will not raise EWB.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Thanks a lot for your clarification by way of an illustration. It will certainly help the querist to understand the solution on the whole.

[Shilpi Jain]

In this case either A can issue the EWB or B can choose to issue the EWB. It is not compulsory that only A has to issue the E W B

[Shilpi Jain]

The reason why B may want to issue the EWB could be that it may not want to C to know the price at which it has got goods from A.

AI Summary

Interstate supply IGST applies where bill to and ship to differ; single e way bill may be issued by supplier or buyer.
The supply is an inter state supply because the place of supply is the purchaser's State, so IGST is chargeable despite delivery occurring in the supplier's State. A single e way bill suffices for the movement; either the supplier or the purchaser may issue it. Invoices may use distinct bill to and ship to entries to reflect buyer and consignee, and the purchaser may elect to generate the e way bill for commercial reasons such as concealment of purchase price.