Unlock the complexities of Goods Movement and E-way Bill Generation. Understand E-way bill models, who can raise it, documentation requirements, and ITC claiming. Navigate scenarios like direct delivery from Manufacturer A to D, choosing between “Bill to Ship to” or “Bill from and Dispatch from” models, and the necessary documents for GST compliance. Explore the intricacies of E-way bill generation, its purpose, and the documentation needed for seamless goods movement. Clarify your doubts and optimize your understanding of E-way bills and GST compliance.
Article explains What is E – way bill, Who can raise e-way bill, Models used for goods movement as explained by FAQ of E-way bill portal, Claiming ITC and E-way Bill, documents that need to be carried along with the goods being transported.
Matter in question:
(Manufacturer) A selling to – B selling to- C selling to – D – – – Delivery of goods from Manufacturer A to D directly
1. E way bill to be raised by which entity
2. Which model of goods movement to be used – “Bill to ship to” or “Bill from and Dispatch from”
3. Documentation required at the time of Goods movement from GST perspective
4. Concern for claiming ITC (Input Tax Credit)?
As per section 68 of GST ACT read with rule 138, every person in charge of conveyance exceeding such amount (Rs. 50,000) should carry a document( e-way bill) which is required to be generated by person causing movement of goods. This is a document evidencing movement of goods from consigner to consignee
The consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill. The unregistered transporter can enroll on the common portal and generate the e-way bill for movement of goods for his clients. Any person can also enroll and generate the e-way bill for movement of goods for his/her own use.
Bill to ship to: “Sometimes, the tax payer raises the bill to somebody and sends the consignment to somebody else as per the business requirements. There is a provision in the eway bill system to handle this situation, called as ‘Bill to’ and ‘Ship to’”.
Bill from and dispatch from: “Sometimes, the supplier prepares the bill from his business premises to consignee, but moves the consignment from some others’ premises to the consignee as per the business requirements. This is known as ‘Billing From’ and ‘Dispatching From’. E-way bill system has provision for this”
E way bill user manual snippet describing bill from dispatch from modes involving 4 parties:
Based on all above information, it can be understood that E-way bill is document to be carried along with goods movement to authenticate the genuineness of the movement. Further, if there is a single movement of goods then singe way bill is enough. Further the portal describes different modes of goods movement where in case of supplier billing to recipient but sending goods to any other location based on recipient instructions can use single way bill under the model of bill to ship to. And in case there is more than 3 parties involved and supplier bills to recipient but moves consignment from some other premises to consignee or any other person on his instructions, then again only 1 way bill is required since goods movement is only 1. In case of goods movement, the tax is decided based on place of supply principal.
By looking into all above details, it can be understood that there are 2 ways in which current scenario can be handled
1. Manufacturer A raising e-way bill on B and sends goods to D
2. B raises e-way bill by using bill from and dispatch from model where dispatch from details are filled for manufacturer A and bill to in the name of C and dispatch to in the name of D
As per section 16(2)(a) mentions that for claiming ITC is in possession of tax invoice or debit note issued by supplier register under the GST Act, or such other tax paying document as may be prescribed. However, this does not mention that e-way bill is required for claiming ITC therefore it can be inferred that e-way bill is not required for claiming credit therefore all parties involved in the movement of goods need not raise e-way bill however ITC is eligible based on conditions as per law.
The person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan, bill of entry as the case may be and a copy of the e-way bill generated from the common portal. He should also have IRN in case of E invoicing applicability