Documents to be carried by a person-in-charge of a conveyance under bill to ship to model.

[Pralhad Jadhav]

'A' from Kerala places an order on 'B' from Maharashtra for supply of goods directly to customer 'C' in Karnataka.

Accordingly, B raises a tax invoice on A for supply of goods with ship to details of C. Parallely, A also raises a tax invoice on C. B per the instruction of A arranges for transport of goods to C and issues an E-way bill with details as present on tax invoice raised on A.

B handsover the copy of the e-way bill and tax invoice (raised on A) to the transporter. The transporter is now intercepted at the border of Karnataka and the flying squad officers are saying that the tax invoice raised by A to C should also be present. Since, tax invoice is not present when the interception is made, submission of same at later stage will not eliminate tax liability and penal consequences.

Dear Experts, your views are requested on the following:

1. Whether the transporter was required to carry the copy of the tax invoice raised by A on C where the movement was caused by B and copy of invoice raised by B on A was also present which provides the details of bill to and ship to party?

2. In case the transporter was required to carry the copy of invoice raised by A on C, and on providing the same after inception, whether tax liability can be raised and penalty can be imposed?

AI Summary

Bill-to-ship-to: carrier needs supplier's tax invoice and e-way bill; intermediary invoice not required during transit (Rule 138) Under a bill-to-ship-to supply, the carrier need only carry the supplier's tax invoice and the e-way bill showing the ship-to details; the intermediary's invoice to the recipient is not required for transit. Forum contributors cite recent high court authority holding that goods accompanied by a valid invoice and e-way bill satisfy transit document requirements, and that production of any additional invoice after interception (if issued before interception) generally precludes levy of tax or penalty. The intercepting authority cannot demand the original buyer's invoice where bill-to-ship-to documents are in order.