‘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 – 

  1.  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.
  2. 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
Now, as per rules, an E-way Bill Number is to be generated whenever there is any movement of goods subject to the certain conditions. In Bill-to and Ship-to scenario, though there are two invoices, the physical movement of goods is happening only once. Thus E-way bill needs to be created only once and could be based on either of the invoices.
 
In Bill-to and Ship-to scenario, there are four places and parties. A look at the information included for the generation of E-way bill on the portal, it is clear that following persons and places are needed –
Party /PlaceMeaning
Bill-from party and placeThe person who supplies the goods
Dispatch-from party and placeThe person/place from where the goods are dispatched. It could be the places from where the supplier operates
Bill-to party and placeThe person who places the order and will be making the payment
Ship-to party and placeThe 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 BillA (Supplier)B (Bill To Party)
Invoice to be usedA 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 placeA – MaharashtraB – Maharashtra
Dispatch-from party and placeA – MaharashtraA – Maharashtra
Bill-to party and placeB – MaharashtraC – Karnataka
Ship-to party and placeC – KarnatakaC – 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 lawFor 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 BillInvoice 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 commentsOn 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.

For a Fast E-way Bill Journey

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