EWAY BILL- BILL FROM DISPATCH FROM

[Allauddin Patel]

Dear experts my question is,

we are registered in karnataka and we buy goods from telangana customer ( registered) and sold this goods to one of our customer in tamilnadu(registered) . so can we generate e invoice and eway bill by selecting bill from dispatch from option ? 

[Sadanand Bulbule]

In this situation, you have to generate e- tax invoice indicating buyers details in Tamil Nadu and e-way bill shall be generated by the actual consignor of the goods located in Telangana [being the location of supply] to the actual recipient of goods in Tamil Nadu, since there is single physical movement of goods from Telangana to Tamil Nadu.

Further, Telengana supplier shall issue tax invoice to you charging IGST followed by your tax invoice to the recipient in Tamil Nadu.

This is typically Bill to Ship to transaction falling under Section 10(1)(b) of the IGST Act, 2017.

[Sadanand Bulbule]

I would like to simplify this:

Here goods move between two States, from the suppliers place to the final buyer on your instruction. The actual supplier/consignor has to issue the IGST invoice and generate e-way bill, as the goods physically move  from his location to another State.

The place of supply is where the goods are finally delivered.

 

[Allauddin Patel]

Yes ....I have to instruct my telangana supplier to issue bill on my name and ship to on my customer tamil nadu under bill to ship to model ....

Then I have to issue tax invoice only on the name of my tamil nadu customer charging igst .....am I correct sir ..?

[Sadanand Bulbule]

This is what I have simplified.

[KASTURI SETHI]

The following facts are doubt-free :-

(i) Two supplies are involved.

(ii) Movement of goods is ONE.

(iii) Invoice is to be issued by the querist in the name his customer located in Tamil Nadu

Q. Then I have to issue tax invoice only on the name of my Tamil Nadu customer charging IGST...Am I correct sir ..?

Ans : YES. You are correct.

The replies of Sh. Sadanand Bulbule, Sir are very much clear. I support his replies in toto.

[Shilpi Jain]

Invoice is required to be issued by the Telangana supplier (to you) and by you (to TN customer).

One e-way bill is sufficient for this transaction.

[deepak gulati]

With due respect to the other panelist,

Mr. Patel, you have following option as well

As per press release dated 23.04.2018 related to this subject matter, Even you can generate e-way bill based on Bill From Despatch from scenario. Relevant extract of the said press release is as under:-

"3. Queries have been raised as to who would generate the e-Way Bill for the movement of goods which is taking place from ‘B’ to ‘C’ on behalf of ‘A’. It is clarified that as per the CGST Rules, 2017 either ‘A’ or ‘B’ can generate the e-Way Bill but it may be noted that only one e-Way Bill is required to be generated as per the following procedure:"

Therefore, please note that only one e-way bill has to be generated either by you or by Telangana supplier. For detailed guidelines, please refer the said press release.

[Padmanathan KV]

Please refer to the below advisory for e-way bill in case of bill-to-ship-to transaction:

https://www.pib.gov.in/Pressreleaseshare?PRID=1529945 

https://www.taxtmi.com/news?id=19951

AI Summary

Inter-state bill-to-ship-to: supplier and intermediary both charge IGST, single e-way bill allowed under Section 10(1)(b) In an inter-state bill-to-ship-to transaction, the supplier at the dispatch location must issue an invoice to the intermediary and charge IGST; the intermediary issues a tax invoice to the final buyer in the destination state charging IGST. The physical movement is single and the place of supply is the final delivery location. One e-way bill suffices for the movement; ordinarily the actual consignor generates it, but authorities permit either the consignor or the intermediary to generate the e-way bill. This structure aligns with bill-to-ship-to treatment under section 10(1)(b) of the IGST Act.