Bill to ship to transaction under gst

A company having its registered place of business at its corporate office and also has manufacturing unit/factory/warehouse in same city so if this company purchases good and get the same delivered at its manufacturing unit so does it is considered as bill to ship to model??

Replies (3)
Quick Summary
This discussion clarifies that a 'bill to ship to' GST transaction typically involves billing one party and shipping goods to a different, separate location, often in a different city. If a company has its registered office and manufacturing unit in the same city, and goods are delivered to the manufacturing unit, it's generally considered a regular intra-city transaction, not a 'bill to ship to' model, provided both locations share the same GSTIN. The conversation also touches upon the determination of the place of supply under IGST, mandatory 'Ship To GSTIN' fields on e-way bills (with an extended deadline of August 1, 2026), and how to correctly report these transactions in GSTR-1.

No, this isn't considered a "bill to ship to" model. 

The "bill to ship to" model typically involves:

  • Billing to one address
  • Shipping to a different address
  • Usually different locations/cities

In your scenario, since both the registered office and manufacturing unit are in the same city, it's considered a regular sale with delivery to another location of the same company within the same city.

For GST purposes, this is a normal intra-city transaction as long as both locations are registered under the same GSTIN.

Ok , so having different location in same city doesn't make it an Bill to ship to transaction? 

Bill-to ship-to transactions are covered under Section 10(1)(b) of the IGST Act for place of supply determination.

Place of supply: In a bill-to ship-to scenario, the place of supply is the location where the goods are delivered to the ship-to party. The invoice raised to the bill-to party uses the ship-to location as the place of supply. This determines whether IGST or CGST+SGST applies.

E-way bill update: GSTN has made the Ship To GSTIN field mandatory on e-way bills. The original deadline (June 15, 2026) has been extended to August 1, 2026. After that date, you must enter the Ship To GSTIN on every e-way bill where goods are delivered to a third-party location. If the ship-to party is unregistered, enter URP.

Invoice: Raise the invoice in the name of the bill-to party with the ship-to party address and GSTIN in the shipping section. GSTR-1 Table 4 (B2B) should show the bill-to party as the recipient.

This [Ship To GSTIN and bill-to-ship-to GST guide](https://taxgarden.in/blog/ship-to-gstin-gst-returns-bill-to-ship-to-2026) covers the e-way bill changes, invoice format, and GSTR-1 reporting.

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