E-way bill in case of Bill to Ship to transactions

Bill to Ship to transaction is one where a buyer asks seller to send goods directly to ultimate buyer.

For example, A placed an order with B to supply goods directly to C.

In case of Bill To Ship To transactions people are confused about generating E-way bill.

Earlier the procedure provided by GST department required generation of 2 E-way bills by both A and B ( from above example ). However now the procedure is changed and only a single E-way bill is required which can be generated either by A or B.

What is Bill To Ship To supply?

Bill To Ship To supply means a supply where buyer is not the recipient of goods. In case of Bill to Ship To supplies goods are not sent to premises of buyer but to another person to whom buyer has sold the goods.

Let us understand this concept with help of an example.

Mr. Krishna placed an order with Mr. Shyam to supply good to Mr. Mohan.

This transaction of supply falls under definition of Bill to Ship To supply.

Here Mr. Krishna is buyer who is buying from Mr. Shyam and Mr. Krishna has already sold good to Mr. Mohan. Now Mr. Krishna has requested Mr. Shyam to deliver goods directly to Mr. Mohan.

Throughout this article we will be using above example for explanation.

So with above example we can break a transaction as:

• Mr. Krishna is the person who has ordered Mr. Shyam to send goods directly to Mr. Mohan.
• Mr. Shyam is the person who is sending goods directly to Mr. Mohan on behalf of Mr. Krishna.
• Mr. Mohan is the recipient of goods.

Further there will 2 tax invoices involved in Bill To Ship To transactions.

• Invoice -1, which would be issued by Mr. Shyam to Mr. Krishna.
• Invoice -2 which would be issued by Mr. Krishna to Mr. Mohan.

Who should issue E-way bill in case of Bill to Ship To supply?

In case of Bill To Ship To transaction either of suppliers can generate E-way bill.

E-way bill can be generated by Billed to party and supplier.

To understand with above example, Mr. Krishna or Mr. Shyam can generate E-way bill. If both are not registered under GST then Mr. Mohan can generate E-way bill.

How to generate E-way bill for Bill To Ship To transaction?

To generate E-way bill, you need to visit GST E-way bill portal.

Login to your account with your user id and password.

As we have already discussed above that E-way bill can be generated by both suppliers. However you need to fill E-way bill form differently in both cases.

CASE 1. E-way bill generated by Supplier (Mr. Shyam)

The following fields shall be filled in Part A of GST FORM EWB-01:

Case 2 E-way bill is generated by Buyer (Mr. Krishna)

The following fields shall be filled in Part A of GST FORM EWB-01:

Now the entire E-way bill cycle for these transactions looks completed. Earlier there was requirement to generate 2 E-way bills for these transactions. However with passage of time we will see more improvements in GST structures and rules.