SALE IN TRANSIT

[SURYAKANT MITHBAVKAR]

A= Supplier of Machinery

B= Agent

C= Final Recipient of Machinery

B has issued Purchase order to A for Rs. 10,00,000/- stating that material to be billed to B and deliver (Ship to) the Goods to C.

C has released Purchase Order on B for Rs.12,00,000/-

If A has issued E Way Bill for value of Rs.10,00,000/- stating that Bill to B and ship to C. However The final invoice will be raised by B to C at Rs. 12,00,000/- .

C is asking to produce E Way Bill for Rs. 12,00,000/- whereas A has supplied machine on E Way bill for 10,00,000/-.

In such case who is liable to generate E-Way bill and at what value .

[Ganeshan Kalyani]

Since the material movement is from B to C the value at the which the invoice is raised by B on C, the e-way bills should also generated with that value. A can invoice on B and need not generate EWB as there is no physical movement.

[Padmanathan KV]

Whether the actual movement of goods from A to C or from B to C?

From the query, I understand that it is from A to C.

The e-way bill is required to be generated by person who initiates the movement of goods:

I: if A is generating E-way Bill based on A's invoice, then value will be Rs.10,00,000/-.

II: Alternatively, B can also generate e-way bill with 'Bill from'- B's address and 'Ship from'- A's address, giving reference to B's invoice in which case amount will be 12,00,000/-

Pls refer to CBIC press release dated 23-04-2018 in this regard, which can be found here: https://pib.gov.in/Pressreleaseshare.aspx?PRID=1529945

In either case, C's credit availment is only based on B's invoice which is also reflected in C's GSTR-2A. E-way bill is only for the movement and it has nothing to do with credit availment per se. So there is no reason for C to worry about value in e-way bill.

AI Summary

E-way bill generation: person initiating goods movement must generate bill; value should reflect the invoice used for supply. E-way bill generation depends on who initiates the physical movement: if A initiates movement, A may generate the e-way bill reflecting A's invoice value; alternatively, B may generate the e-way bill with 'bill from' as B and 'ship from' as A, referencing B's invoice and reflecting B's invoice value. Input tax credit for C is governed by B's invoice, and e-way bill value is a movement compliance matter separate from credit entitlement.