Mandatory EWB for Intrastate Gold Transport in Kerala Effective January 2025 : GST Advisory
Effective Date: January 20, 2025
The Goods and Services Tax Network (GSTN) has announced the implementation of a new feature in the E-Way Bill (EWB) system to facilitate the generation of E-Way Bills for the movement of gold within Kerala State. This update aligns with the notification issued by the Government of Kerala and is designed to ensure compliance for the movement of goods under Chapter 71, excluding imitation jewelry.
Key Highlights of the New EWB Feature
Scope of Coverage
- Eligible Goods: The new EWB feature applies exclusively to goods classified under Chapter 71 of the Harmonized System of Nomenclature (HSN), excluding HSN 7117 (Imitation Jewelry).
- Intrastate Movement: This feature is applicable only for the intrastate movement of gold within the state of Kerala. Interstate movement of gold remains subject to existing provisions.
Generation of EWB for Imitation Jewelry (HSN 7117)
- Taxpayers transporting imitation jewelry can continue using the regular EWB generation option in the EWB system.
- This ensures that the movement of all goods under HSN 7117 remains unaffected by the new feature.
Steps for Generating EWB for Gold
- Log in to the EWB Portal: Access your taxpayer account on the EWB system.
- Select “EWB for Gold” Option: Choose the dedicated feature for gold movement under Chapter 71, excluding imitation jewelry.
- Provide Required Details: Fill in the relevant fields, including product HSN codes, invoice details, and transportation information.
- Generate EWB: Verify and generate the EWB for intrastate movement of gold.
e-Way Bill Applicability for Gold and Precious Stones: A Comprehensive Overview
The rules governing the movement of gold and precious stones have undergone significant changes in recent years. These changes aim to enhance transparency, curb tax evasion, and streamline monitoring of high-value commodities under HSN Chapter 71. The National Informatics Centre (NIC) introduced updates for e-way bill generation for gold and precious stones in 2022, followed by key recommendations by the GST Council in 2023. Below, we provide a detailed breakdown of the applicability and requirements for e-way bills concerning gold and precious stones.
Key Developments in e-Way Bill Regulations for Gold
Pre-2022 Scenario:
- E-way bills were not required for interstate or intrastate transport of gold, regardless of value.
NIC Update (September 12, 2022):
- e-Way bill generation was introduced for gold and other precious stones under HSN Chapter 71.
50th GST Council Meeting (July 11, 2023):
- Recommended implementation of Part-A of e-way bill for intrastate movement of gold and precious stones where consignment value exceeds Rs. 2 lakh or any limit notified by respective states/UTs.
- CGST Rule 138F was introduced, notified on August 4, 2023, via Notification 38/2023, making these provisions mandatory.
e-Way Bill Applicability for Gold and Precious Stones
Scope of Applicability:
- Mandatory for both interstate and intrastate movement of gold and precious stones.
- Applicable when consignment value exceeds Rs. 2 lakh (or state-specified thresholds).
Special Provisions for Gold e-Way Bills:
- No Part-B Details: Transporter and vehicle details cannot be updated.
- No Consolidated e-Way Bills: Multiple consignments cannot be combined under a single e-way bill.
- Extension of Validity: Allowed without updating Part-B details.
- No Multi-Vehicle Option: A single e-way bill cannot cover multiple vehicles.
Details Required for e-Way Bill Generation
| Details Required | Description |
|---|---|
| GSTIN of Supplier | GST Identification Number of the supplier dispatching the gold/precious stones. |
| GSTIN of Recipient | GST Identification Number of the recipient receiving the consignment. |
| Supplier and Recipient Address | Full address including city, state, and PIN code. |
| Invoice Number and Date | Unique identification and date of the related invoice. |
| Consignment Value | Total value of the goods being transported. |
| HSN Code | Applicable HSN Code for gold or precious stones (Chapter 71). |
| Validity Period | Calculated based on the distance between the origin and destination. |
State-Level Customization
The 50th GST Council Meeting allowed individual states to define specific rules and thresholds. States/UTs can notify:
- Higher or lower value limits for mandatory e-way bill generation.
- Applicability for transactions involving GST-registered persons and unregistered suppliers.
For instance, if a GST-registered person receives gold exceeding the threshold value from an unregistered supplier, Part-A of the e-way bill must be furnished.
Purpose and Benefits of e-Way Bill Implementation for Gold
- Enhanced Transparency: Ensures clear tracking of high-value commodity movement.
- Improved Monitoring: Helps governments monitor and control the supply chain of gold and precious stones.
- Curbing Tax Evasion: Reduces instances of unreported transactions.
- State-Specific Flexibility: Empowers states to adapt rules based on regional trade dynamics.
Conclusion
The introduction of mandatory e-way bill generation for gold and precious stones marks a significant step towards ensuring tax compliance and curbing evasion. Taxpayers transporting goods under Chapter 71 must familiarize themselves with these changes to avoid penalties and delays. The changes implemented under CGST Rule 138F aim to streamline processes, making it easier for authorities to monitor the movement of valuable good to integrate this feature into their operations to ensure smooth and compliant transactions.
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