Timing of Tax Invoice Issuance in Bill-to-Ship-to Transactions under GST

[Chitresh Gupta]

'In a 'Bill to Ship to' transaction under GST, when should the supplier (bill to party) issue the tax invoice: before the actual movement of the goods or after delivery? Consider Section 31(1) of the CGST Act, which stipulates that the invoice must be issued before or at the time of removal of goods for supply when the supply involves movement, or at delivery/making available in other cases. What is the correct timing for invoice issuance in such transactions?'

AI Summary

Timing of GST Tax Invoice in Bill-to-Ship-to Supplies Clarified Under Section 31(1) of CGST Act A forum query concerns the correct timing for issuing a tax invoice in a 'Bill to Ship to' transaction under GST. The supplier invoices the 'bill to' party while goods are shipped directly to a third party. The question is whether the supplier must issue the tax invoice before the actual movement of goods or after delivery to the 'ship to' party, in light of Section 31(1) of the CGST Act, which requires issuance before or at removal when movement is involved, or at delivery otherwise.