E-Way bill Requirements

[Sangeetha D]

Mr. A is registered in Tamil Nadu and purchases goods from Mr. B, who is registered in Karnataka. Mr. A directs Mr. B to deliver the goods to Mr. C, a registered person in Kerala. Mr. A issues a tax invoice to Mr. C. In this case, what are the e-way bill requirements?

[Sadanand Bulbule]

"B" in Karnataka should raise E-way Bill in favour of "C" the recipient/consignee of goods in Kerala under valid tax invoice indicating "Bill to Ship to" transaction. Means actually the consignor who moves the consignment of goods to the consignee should raise the E-way bill.

[YAGAY andSUN]

Scenario

• Mr. A: Registered in Tamil Nadu (Buyer)
• Mr. B: Registered in Karnataka (Supplier)
• Mr. C: Registered in Kerala (Recipient)
• Goods are delivered by Mr. B directly to Mr. C on instructions from Mr. A
• Invoice is issued by Mr. A to Mr. C

Nature of Transaction

• This is a "Bill to – Ship to" model
• Covered under Explanation 2 to Section 10(1)(b) of the IGST Act
• Two supplies involved:
  1. Mr. B → Mr. A
  2. Mr. A → Mr. C

E-Way Bill Requirements (as per Rule 138 and CBIC Circular No. 10/10/2017-GST)

• Only one e-way bill is required for the movement of goods
• Two options for generating the e-way bill:

Option 1: E-Way Bill by Mr. A (Bill To Party)

• Bill To: Mr. C (Kerala)
• Ship To: Mr. C (Kerala)
• Invoice Reference: Invoice from Mr. A to Mr. C
• Generated By: Mr. A

Option 2: E-Way Bill by Mr. B (Supplier)

• Bill To: Mr. A (Tamil Nadu)
• Ship To: Mr. C (Kerala)
• Invoice Reference: Invoice from Mr. B to Mr. A
• Generated By: Mr. B

Important Notes

• Both options are legally valid
• Place of delivery in the e-way bill must be Kerala
• Only one e-way bill needs to be generated for the physical movement
• Choice of option depends on who is initiating transport or has control over logistics

***

[Sadanand Bulbule]

Yagay & Sun, thanks for your clear validation.

[Shilpi Jain]

This transaction involves issue of 2 invoices - 

a. Mr. B to Mr. A; and

b. Mr. A to Mr. C.

EWB is required for movement of goods. Thereby, even though there are 2 invoices, since there is only one movement of goods, only one person needs to issue the EWB.

So in this case, either B or A can issue the same. However one should ensure that the corresponding invoice accompanies the goods during movement.

There is also an advisory in this regard.

[Padmanathan KV]

Please see the press release in  https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1529945

It has been clarified that an e-way bill can be generated by either Mr.A or Mr.B. The procedure in both the cases has been clarified in the press release.

[KASTURI SETHI]

E-way Bill — Issues regarding “Bill To Ship To” for E-way Bill under CGST Rules, 2017

Press Release No. 152/2018, dated 23-4-2018

AI Summary

E-Way Bill Dynamics: Single Document Governs Interstate Goods Movement with Multiple Parties Across Three States In a 'Bill to - Ship to' transaction across states, a registered supplier in Karnataka is directed to deliver goods to a recipient in Kerala, with an invoice issued by the buyer in Tamil Nadu. Only one e-way bill is required for the goods movement, which can be generated either by the supplier or the buyer. The e-way bill must accurately reflect the bill from, dispatch from, bill to, and ship to details, ensuring compliance with GST regulations.