TaxTMI 
TaxTMI 
HOW CAN WE "SALE IN TRANSIT" AFTER E-WAY BILL GENERATED ( JUST LIKE E-1 / E-2 SALES IN CST SYSTEM )
E-WAY BILL
06 Feb 2025 
6 Replies 
1096 Views Asked by
Bill to-Ship to transaction permits e-way bill issuance for transit sales, while transit exemptions under CST are unavailable under GST.
Issue concerns sale-in-transit after e-way bill generation and taking delivery mid-transport. Place of supply for moving goods is the location when movement terminates. Use the e-way bill's Transaction Type Bill to Ship to option and, where a subsequent sale is invoiced, issue an e-way bill on that invoice. CST E 1/E 2 transit exemptions are not available under GST; parties may instead transact with tax chargeability and the possibility of claiming Input Tax Credit. A practical limitation is that the Bill to Ship to choice is to be selected before transport, raising questions about delivery during transit. (AI Summary)
Issue concerns sale-in-transit after e-way bill generation and taking delivery mid-transport. Place of supply for moving goods is the location when movement terminates. Use the e-way bill's Transaction Type Bill to Ship to option and, where a subsequent sale is invoiced, issue an e-way bill on that invoice. CST E 1/E 2 transit exemptions are not available under GST; parties may instead transact with tax chargeability and the possibility of claiming Input Tax Credit. A practical limitation is that the Bill to Ship to choice is to be selected before transport, raising questions about delivery during transit. (AI Summary)