GST | Bill to Ship to & Bill from ship from transaction applicability

Transaction 1: Normal regular Sale/Purchase transaction took place between Party A (seller) and Party B (buyer) where physical goods were sent.

Now business scenario for Return:

• Party B (buyer) wants to return the goods to Party A (seller).
• But Party A (seller) instructs not to send physical goods back to his warehouse, instead, send the same to Party C (another buyer).
• Note: The requirement is to show it as a RETURN from party B to part A and NOT a sale/purchase transaction.

Queries:

• Is such a transaction/direct movement of goods allowed in GST law?
• What document type (BTST, BFDF, Regular) does the party B select while preparing EWB?
• What document type (BTST, BFDF, Regular) does party A select while preparing IRN for credit note for party B?
• What document type (BTST, BFDF, Regular) does party A select while preparing IRN for sale to party C?