Robotics & Automation FAQs

1. What is the “Bill To Ship To” model?

In a typical Bill To Ship To transaction, three persons are involved:

• A – The person who places the order with B and instructs B to send the goods directly to C.
• B – The person who supplies/sends the goods directly to C on behalf of A.
• C – The recipient of the goods.

2. How many supplies are involved in a Bill To Ship To transaction?

There are two supplies involved in the complete transaction. Accordingly, two tax invoices are required.

3. Who issues the two tax invoices?

The invoices are:

Invoice 1:
B → A

Invoice 2:
A → C

4. Who is responsible for generating the e-Way Bill?

For the movement of goods from B to C on behalf of A, either A or B can generate the e-Way Bill under the CGST Rules, 2017.

5. Is more than one e-Way Bill required for the movement from B to C?

No. Only one e-Way Bill is required for the movement of goods from B to C in the Bill To Ship To transaction.

6. What happens if B generates the e-Way Bill?

If B generates the e-Way Bill, the following details are required in Part A of GST FORM EWB-01:

7. What happens if A generates the e-Way Bill?

If A generates the e-Way Bill, the following details are required in Part A of GST FORM EWB-01:

8. Does the actual dispatch location have to belong to A?

No. Where the goods are physically dispatched by B, the Dispatch From location may be the principal or additional place of business of B.

9. What is the key difference between the two cases?

The difference is who generates the e-Way Bill and which invoice details are reported:

• If B generates the e-Way Bill → Invoice-1 (B → A) is reported.
• If A generates the e-Way Bill → Invoice-2 (A → C) is reported.

In both cases, the physical movement is from B to C.

10. What is the practical takeaway for a Bill To Ship To transaction?

The transaction involves:

Commercial flow:
B → A → C

Physical movement:
B → C

Invoices:

1. B → A
2. A → C

e-Way Bill:
Only one e-Way Bill, which can be generated by either A or B as per the prescribed procedure.

Source: Ministry of Finance / Press Information Bureau, clarification dated 23 April 2018, “Issues regarding ‘Bill To Ship To’ for e-Way Bill under CGST Rules, 2017.”