‘Bill to and Ship to’ are common business scenarios where the party that on the bill is different from the party or parties actually receiving or shipping goods. When one settles a transaction involving a “bill to and ship to scenario”, two types of invoices are generated. The first invoice has information about the party receiving the goods, while this second invoice will have information about who’s billing for them.
Let us refer to the following example to understand the scenario better
Supplier A in Maharashtra sells some goods worth Rs.1,00,000/- attracting 5% GST and bills to customer B in Maharashtra. On instructions from customer B, the goods are to be supplied to C in Karnataka. Now as per GST rules, there will be two invoices –
- Invoice no A001 (for example) from Supplier A to Recipient B. As both A and B are in the same state, this will be an intra-state transaction and CGST and SGST will be charged.
- Invoice no B001 (for example) from B (who will be the supplier) to Recipient C (who is in a different state). In this case, IGST will be applied. It should be noted that here the value of goods will be based on what price B has charged to C for this transaction which could be different from what A charged to B
| Party /Place | Meaning |
|---|---|
| Bill-from party and place | The person who supplies the goods |
| Dispatch-from party and place | The person/place from where the goods are dispatched. It could be the places from where the supplier operates |
| Bill-to party and place | The person who places the order and will be making the payment |
| Ship-to party and place | The person/place who will be actually receiving the goods |
Here, either you or your supplier can generate the E-way Bill Number. Let us examine what details need to be presented in order to generate an E-way Bill Number
| Who generates E-way Bill | A (Supplier) | B (Bill To Party) |
|---|---|---|
| Invoice to be used | A will generate E-way Bill using Invoice No A001 details. | B will generate E-way Bill using Invoice No B001 details. |
| Bill-from party and place | A – Maharashtra | B – Maharashtra |
| Dispatch-from party and place | A – Maharashtra | A – Maharashtra |
| Bill-to party and place | B – Maharashtra | C – Karnataka |
| Ship-to party and place | C – Karnataka | C – Karnataka |
| Who can reject the E-way Bill? | As GSTIN of B is present in the recipient data (Registered Bill-to Party), only B can reject the E-way Bill though C is the actual recipient of goods. | As GSTIN of C is present in the recipient data (Registered Bill-to Party), C can reject the E-way Bill. |
| Supply Type and Tax applicable as per GST law | For Invoice No. A001 it is Intrastate and hence CGST and SGST applicable. | For Invoice No. B001 it is Interstate and hence IGST applicable. |
| Impact on GSTR 1 if data is to be populated from E-way Bill | Invoice No B001 from B to C will not be present in E-way bill records and hence no auto-population for GSTR1 of B for this transaction. | Invoice No A001 from A to B will not be present in E-way bill records and hence no auto-population for GSTR1 of A for this transaction. |
| Other comments | On delivery, C will receive the E-way bill details as per invoice raised by A for B. | On delivery, C will receive the E-way bill details as per invoice raised by B for C only. |
Q. How does your business generate a bill to- ship to address in e-way bill system?
When it comes to interstate freight, the e-way bill is surprisingly very similar to its intrastate counterpart. When it comes to interstate freight, you’ll notice that – as in all other cases – -your e-way bill system has separate fields for every tax (in addition to date and time fields). So if you happen to be selling goods from Mumbai to Bangalore, we recommend entering your supplier’s ‘Billing Address’ GSTIN in the ‘Billing To’ section on top of your e-way bill form and your own GSTIN in the ‘Ship To’ section below. In any case, make sure both parties have an approved GSTIN before moving forward with an online shipment.
SOURCE : Press Release, BILL TO / SHIP TO IN GST
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