Bill to Ship to-Delivery of materials at any custom port of India

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This discussion explores the feasibility of the 'Bill to Ship to' model in India for a scenario involving an Indian supplier, an Indian customer, and a foreign buyer. The core question is whether an Indian supplier can invoice an Indian customer and deliver goods directly to an Indian customs port on behalf of that customer for export. While initially suggested as possible, clarification is sought regarding GST implications, particularly if the Indian customer is registered in a different state. The need for specific GST Act sections, rules, or notifications to validate this transaction for suppliers is highlighted.

Santosh Pandey

Santosh Pandey (Querist)
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19 January 2023 Dear Expert

Greetings !!

There are 3 parties such as A-Indian Supplier, B-Indian Customer and C-Foreign Customer in a shipment

1st Supply
A will raise invoice in INR showing POS as registered place of B in India and deliver the materials at chennai or mumbai custom port

2nd Supply
B will raise an export invoice in USD and export the same materials to C-foreign country

Custom clearance will be done through B's documents

Please advise, if above shipment is possible under Bill to Ship to model in GST

Thank you in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 January 2023 This is not a bill to ship model as supply is only to B at his port of shipment.
In invoice and E way bill mention the place of delivery Mumbai/ Chennai port.

Santosh Pandey

Santosh Pandey (Querist)
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20 January 2023 Dear Expert

Greetings of the day !!

Thank you for your reply, but in case, B is registered in GST in the state of Delhi only, then

Please advise

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 January 2023 In any case it's direct supply to B, no third person involved within India.

Santosh Pandey

Santosh Pandey (Querist)
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20 January 2023 Dear Expert

It means any Domestic supplier can Bill to any domestic customer and deliver the materials on his behalf at any Indian custom port, please provide some reference of section of GST act in which, it is mentioned that this kind of shipment is possible, because our supplier is saying that this kind of shipment is not possible as per GST

Thank you in advance
Best Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 January 2023 Then E way bill has to be generated bill to ship to mode.

Santosh Pandey

Santosh Pandey (Querist)
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25 January 2023 Dear Expert

Please support with any rule, notification, any section of GST, in which it is clearly mentioned, so that I could refer that to explain our supplier, my supplier is asking for some basis by the GST law

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 January 2023 See the link.
https://cleartax.in/s/bill-to-ship-to-gst-eway-bill

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