Query Regarding Issuance of Multiple E-Way Bills in Bill-to Ship-to Transaction

[Lav Prajapati]

Dear Sir/Madam,

I would like to seek clarification regarding the compliance requirements for issuance of e-way bills in a "bill-to ship-to" transaction involving multiple parties.

Facts of the case:

• Mr. A raises an invoice on Mr. B on a "bill-to ship-to" basis.
• The goods are directly shipped to the ultimate recipient (as per instructions of Mr. B), and an e-way bill is generated by Mr. A for such movement.
• Subsequently, Mr. B raises an invoice on Mr. C for the same goods.
• Mr. B also generates a separate e-way bill for the same consignment, even though there is only one physical movement of goods.

Query:
In the above scenario, two e-way bills have been generated for a single movement of goods:

1. One by Mr. A (supplier to Mr. B - bill-to ship-to)
2. Another by Mr. B (supplier to Mr. C)

Kindly clarify:

• Whether issuance of two e-way bills for a single movement of goods is permissible under GST law.
• If yes, what is the correct procedure to be followed to ensure compliance.
• If not, which party is required to generate the e-way bill and how should the transaction be properly documented.
• what are consequences may face by the party) like interest, penalty or reversal of ITC)

Your guidance on the above matter will be highly appreciated.

Thanking you

AI Summary

Bill-to-ship-to e-way bills require only one bill for a single movement of goods under GST compliance.
A bill-to-ship-to arrangement involves two invoices but only one physical movement of goods, and the GST e-way bill framework is applied on that basis. The compliance position described is that only one e-way bill is required for the movement, to be generated either by the original supplier showing the buyer as Bill To and the ultimate recipient as Ship To, or by the intermediate buyer showing the relevant dispatch and ship-to particulars. Issuance of two e-way bills for the same movement is described as duplicative and inconsistent with proper GST documentation.