Compliance with ‘Bill to’ and ‘Ship to’ in Eway Bill

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Date: 28 Dec 2022


Compliance with ‘Bill to’ and ‘Ship to’ in Eway Bill

 

A common practice that takes place in the industry is when products are sold to one person but delivered to another location. The buyer’s registered office address is different from the delivery address. When creating an Eway bill and issuing an invoice, the distinction between the "Bill To" and "Ship To" addresses must be carefully considered.

What are “Bill to” and “Ship to” under the E-way bill?

The "Bill To Ship To" model of supply involves a transaction involving three people:

  1. A is the one who gave "B" the directive to transport products immediately to "C."

  2. On behalf of "A," "B" is the one shipping items straight to "C."

  3. The recipient of the goods is "C."

 

Here two supplies are included, and two tax invoices must be issued:

  1. The first invoice would be issued by “B” to “A”.

  2. The second invoice will be issued by “A” to “C.” 

Instance 1: E-way bill is generated by “B”

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

Details of Invoice-1 must be filled

Instance 2: E-way bill is generated by “A”

In this case, 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

Details of Invoice-2 must be filled

Delivery to another location

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:

  1. The buyer requests delivery to one of the seller's warehouses, which is not the seller's registered office.

  2. Buyer (trading company) requests direct delivery of the products to one of his clients' locations (third party).

  3. Buyer requests delivery of the products to a facility for special storage (cold storage, customs warehouse, etc.)

  4. The buyer needs the items delivered to a customer to whom he has already sold the goods but is located at a separate location.

  5. 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).

Responsibility to generate Eway Bill

Situation 1

Although the "Bill to" and "Ship to" addresses, in this case, are different, the delivery is required to the same individual, i.e., the person with the same GSTIN. This might occur, for instance, if a buyer requests that products be delivered to one of his warehouses or storage facilities. It involves the buyer purchasing the goods from the provider and transporting them to a secondary location rather than the original location.

Situation 2

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).

Conclusion

In conclusion, it is appropriate to note that just one e-way bill needs to be generated to transfer products to a different location owned by the same buyer. Two e-way bills must be generated if the registered persons purchasing the products and accepting delivery of those goods have different addresses.

 

In cases where the delivery destination differs from the buyer's, it is also necessary to generate two e-way bills. The cycle of transactions has been completed, and taxes for interstate transactions will now change.

 

With Busy Accounting Software, generating e-way bills is ensured to be easy and convenient. Try Busy’s auto-generation of e-way bill feature for a seamless documenting of transactions.