QUESTION

`A` places an order on `B` for purchase of goods. `B` accordingly places an order on `C` for purchase of same goods for supplying to `A`. `A` has instructed `B` to deliver the goods directly to his customer `D`. Correspondingly, `B` instructs `C` to deliver the goods to `D`. Also, `A` wishes to supply these goods to `D` free of cost under CSR scheme. Kindly explain: a. How the documentation would be done; b. How eway bill will be generated; and c. Who will generate eway bill.

ANSWER

Facts of the Case: `A` places an order on `B` for purchase of goods. `B` accordingly places an order on `C` for purchase of same goods for supplying to `A`. `A` has instructed `B` to deliver the goods directly to his customer `D`. Correspondingly, `B` instructs `C` to deliver the goods to `D`. Also, `A` wishes to supply these goods to `D` free of cost under CSR scheme.

Reply: In this case:three transactions will take place:

Between B & C: C will raise invoice mentioning Bill to B and Ship to D along with EWB

Between A & B: B will raise invoice to A and no need to mention ship to because material is already shipped. Write a note on the invoice that material is already shipped vide bill no __ dated__ and EWB no___dated __ of C. Since there is no movement of goods, no need to raise EWB.

Between A & D: As A is supplying goods to D free of cost under CSR Scheme. Therefore if A is supposed to maintain any document as per the requirement of scheme, then A will prepare those documents.
So far as GST is concerned A is not obliged to issue any document as the material is provided free of cost and the same is not covered under the definition of supply under section 7 of the CGST Act (Reply dt. 21/07/2021)