Compliance With ‘Bill to’ And ‘Ship to’ in E-way Bill
Often the address of the buyer of goods is different from the address where the goods need to be delivered. The address of the buyer is mentioned in “Bill to” and the address where goods are to be delivered is mentioned in “Ship to”. Such situations need to be handled carefully while generating e-way bills and issuing invoices. In this article we will show you how to deal with different “bill to” and “ship to” addresses while generating e-way bills.
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Example of Different ‘Bill to’ and ‘Ship to’ Addresses
Let’s look at an example to understand the ‘Bill to’ And ‘Ship to’ model of supply:
- ‘Mr. A’ buys goods from ‘Mr. B’
- Mr. A instructs Mr. B to deliver the goods directly to ‘Mr. C’
Since there are two supplies in this situation, two invoices will need to be raised:
- The first invoice would be issued by Mr. B to Mr. A.
- The second invoice will be issued by Mr. A to Mr. C.
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Case 1 – ‘Mr. B’ Generates the E-Way Bill
In this case, the following fields must be filled in part A of GST Form EWB-01:
| Bill From | In this field details of ‘B’ must be filled |
| Dispatch From | The location from where the goods are dispatched. It can be the principal or an additional place of business of ‘B’ |
| Bill To | In this field, details of ‘A’ must be filled |
| Ship To | In this field, address of ‘C’ must be filled |
| Invoice Details/td> | Details of Invoice-1 must be filled |
Case 2 – ‘Mr. A’ Generates the E-Way Bill
In this case of ‘Bill to’ And ‘Ship to’, the following fields must be filled in part A of GST Form EWB-01:
| Bill From | In this field details of ‘A’ must be filled |
| Dispatch From | The location from where goods are dispatched. It can be the principal or an additional place of business of ‘B’ |
| Bill To | In this field, details of ‘C’ must be filled |
| Ship To | In this field, address of ‘C’ must be filled |
| Invoice Details/td> | Details of Invoice-2 must be filled |
Situations with Different ‘Bill to’ And ‘Ship to’ Addresses
There are some situations where the transferred products are shipped to a location other than the purchaser’s (registered address). Here are a few unusual scenarios when a customer might request delivery to a different address or a third party:
- The buyer requests delivery to one of the seller’s warehouses, which is not the seller’s registered office.
- Buyer (trading company) requests direct delivery of the products to one of his clients’ locations (third party).
- Buyer requests delivery of the products to a facility for special storage (cold storage, customs warehouse, etc.)
- The buyer needs the items delivered to a customer to whom he has already sold the goods but is located at a separate location.
- The buyer’s client is a retailer that needs goods delivered to multiple shops.
The addresses for the “Bill to” and “Ship to” on the GST invoice must differ in the above situations. As the goods are transported to a different address, the consumer purchasing the goods has his billing address at his registered office address.
While generating the Eway Bill for the transfer of goods, this address is necessary. The person should properly state the buyer’s GSTIN and the delivery location while creating the Eway bill. The delivery location specified must correspond to the location where the goods will be delivered rather than the billing location (in the case where the delivery location differs from the billing address).
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Responsibility to Generate Eway Bill
Let’s take a look at who is responsible for generating e-way bill in different scenarios:
- In case GSTIN of buyer and receiver is the same
There are situations where the’Bill to’ And ‘Ship to’ addresses are different from each other, however the delivery is still made to the same person, as the GSTIN at both locations is the same.
For example, ‘X’ is a large dealer of watches with a registered office in Pune. He also has multiple warehouses spread throughout Maharashtra. He buys 1,000 watches from his supplier ‘Y’ who is based in Mumbai. However, X instructs Y to send the watches directly to X’s warehouse in Kolhapur. In such a scenario, the “Bill to” and “Ship to” addresses are different, hence the GST invoice will clearly mention the two different addresses. The registered office address will appear in “Bill to” and the address of the warehouse where the goods are to be delivered will appear in “Ship to”. The transporter of the goods will need to carry the E-Way Bill during transportation. - In case the GSTIN of buyer and receiver are different
In this case, delivery is made to a different person, i.e., with a different GSTIN, and the ‘Bill to’ And ‘Ship to’ addresses are different. This may occur, for instance, when products are delivered straight from the supplier to the buyer’s client (a third party).
Continuing with the example of X and Y, if X asks Y to deliver the products straight to ‘Z’, who is a wholesale customer of X, then the GSTIN of the buyer will be different from that of the receiver. However, there is no change in the requirements for an e-way bill. In this scenario too, only one e-way bill is required, which can be generated by either Y or Z. X has no role to play in the generation of the e-way bill, for he is not the supplier, the receiver or the transporter.
Conclusion
A single e-way bill needs to be generated when goods are being transported to a different location owned by the same buyer. Two e-way bills must be generated if the registered person purchasing the products and the one accepting delivery of those goods have different addresses.You can easily generate e-way bills, even in bulk, using BUSY E-Way Bill Software, while maintaining compliance with ‘Bill to’ And ‘Ship to’ requirements.
Frequently Asked Questions
- What is the Bill to and Ship to concept in an E-Way Bill?The Bill to and Ship to concept involves billing the goods to one party (the buyer) while shipping them to another (the recipient). It is common in drop-shipment transactions where the billing and delivery addresses differ.
- How does the Bill to and Ship to concept affect E-Way Bill generation?In such cases the E-Way Bill must include both Bill to and Ship to details. The consignor must carefully select the type of transaction and provide accurate details for both parties to ensure compliance with GST rules.
- Who is responsible for generating the E-Way Bill in a Bill to and Ship to transaction?The responsibility lies with the supplier or the transporter depending on the agreement. The E-Way Bill must capture the Bill to and Ship to details accurately to ensure proper tracking and compliance.
- What is the significance of maintaining compliance in Bill to and Ship to transactions?Compliance ensures proper documentation avoids penalties and ensures GST credit eligibility for parties involved. Accurate information in the E-Way Bill minimizes discrepancies and helps smooth business operations.
- What are the common challenges in Bill to and Ship to compliance for E-Way Bills?Common challenges include incorrect address entry mismatched details between invoices and E-Way Bills and miscommunication between parties all of which can lead to penalties or legal scrutiny.
- What happens if there is an error in Bill to or Ship to details on an E-Way Bill?Errors can result in penalties delayed deliveries or disputes during audits. Corrections are not permitted in an E-Way Bill so ensuring accuracy during generation is crucial.
- Is it mandatory to have separate E-Way Bills for each transaction involving Bill to and Ship to?No a single E-Way Bill can be used for Bill to and Ship to transactions if all details are accurately included. Separate E-Way Bills are not required unless there are multiple consignments.
