New Delhi: The Finance Ministry today clarified on e-way bill generation in cases where three parties are involved in a transaction, saying only one such bill needs to be generated.
A number of representations have been received seeking clarifications in relation to requirement of e-way bill for Bill To Ship To model of supplies, the ministry said in a statement.
"Queries have been raised as to who would generate the e-Way Bill for the movement of goods which is taking place from B' to C' on behalf of A'. It is clarified that as per the CGST Rules, 2017 either A' or B' can generate the e-Way Bill but it may be noted that only one e-Way Bill is required to be generated," the ministry said.
In a Bill To Ship To model of supply, there are three persons involved in a transaction, namely A' who is the person who has ordered, B' to send goods directly to C' -- who is the recipient of goods.
Abhishek Jain, Tax Partner, EY India said, "To lay rest to the general apprehensions of the industry on the modus operandi for generation of e-ways bills in case of bill to ship to transactions, the government today clarified that only one e-way bill would need to be generated. This should now aid resolving any disconnects between businesses and on ground officers on the requirement of two e-way bills."
"It's an important clarification as there was an ambiguity on three party transactions which are quite common. It's now clear that only one e-way bill is required in such cases," PwC Partner and Leader Indirect Tax Pratik Jain said.
Updated Date: Apr 24, 2018 11:41 AM