Ministry of Finance clarifies Bill To Ship To transactions

Ministry of Finance clarifies Bill To Ship To transactions :Recently Central Board 0f Indirect Taxes & Customs has provided clarification onBill To Ship To model of supplies. In a typical Bill To Ship To model of supply, there are three persons involved in a transaction, namely:

• Buyer of the Goods
• Seller of the goods
• Reciept of the goods[person to whom goods are directly send by seller on Buyers instructions]

Recently Central Board 0f Indirect Taxes & Customshas clarified this scenario. The complete clarification provided by CBIC is given below for your reference:

---

Ministry of Finance

Issues regarding Bill To Ship To for e-Way Bill under CGST Rules, 2017

Posted On: 23 APR 2018 4:51PM by PIB Delhi

A number of representations have been received seeking clarifications in relation to requirement of e-Way Bill for Bill To Ship To model of supplies. In a typical Bill To Ship To model of supply, there are three persons involved in a transaction, namely: A is the person who has ordered B to send goods directly to C. B is the person who is sending goods directly to C on behalf of A. C is the recipient of goods.

2. In this complete scenario two supplies are involved and accordingly two tax invoices are required to be issued:

Invoice -1, which would be issued by B to A. Invoice -2 which would be issued by A to C.

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:

Case -1: Where e-Way Bill is generated by B, the following fields shall be filled in Part A of GST FORM EWB-01:

1.	Bill From:	In this field details of B are supposed to be filled.
2.	Dispatch From:	This is the place from where goods are actually dispatched. It may be the principal or additional place of business of B.
3.	Bill To:	In this field details of A are supposed to be filled.
4.	Ship to:	In this field address of C is supposed to be filled.
5.	Invoice Details:	Details of Invoice-1 are supposed to be filled

Case -2: Where e-Way Bill is generated by A, the following fields shall be filled in Part A of GST FORM EWB-01:

1.	Bill From:	In this field details of A are supposed to be filled.
2.	Dispatch From:	This is the place from where goods are actually dispatched. It may be the principal or additional place of business of B.
3.	Bill To:	In this field details of C are supposed to be filled.
4.	Ship to:	In this field address of C is supposed to be filled.
5.	Invoice Details:	Details of Invoice-2 are supposed to be filled.

********

DSM/RM/KA