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 documentation: valid invoice and e-way bill accompanying consignment negate need for separate ordering-party invoice.
Where goods move under a bill-to ship-to arrangement, if the consignment is accompanied by a valid tax invoice issued by the consignor and a valid e-way bill showing bill-to/ship-to details, intercepting authorities should not demand the ordering party's separate tax invoice; subsequent production of that secondary invoice, when legitimately issued, should not by itself justify tax liability or penalty.