Introduction
Kerala has become the first state in India to introduce the requirement of an E-Way Bill (EWB) for the intra-state transportation of gold and precious stones valued at ₹10 lakh and above. This mandate is effective from January 20, 2024, as per the notification issued by the Government of Kerala.
What is an E-Way Bill?
An E-Way Bill is an electronic document generated on the GST portal, serving as evidence of the movement of goods and ensuring tax compliance. As per Rule 138 of the CGST Rules, 2017, every registered person involved in the movement of goods with a consignment value exceeding ₹50,000 is required to generate an EWB. However, states have the flexibility to set a lower threshold for intra-state movement.
Previously, an E-Way Bill was mandatory for the inter-state supply of gold and precious stones, but there was no such requirement for intra-state movement. The latest update makes it compulsory for intra-state movement in Kerala as well.
Key Features of EWB for Gold
- The EWB for gold and precious stones must be generated through the “EWB for gold” option on the GST portal.
- The usual EWB system will continue for imitation jewellery.
- This implementation follows the GST Council’s recommendation on July 11, 2023, leading to the insertion of Section 138F in the CGST Act and corresponding amendments in the SGST Rules for states opting for this mandate.
- Previously, EWB was only required for inter-state movement valued at ₹2 lakh and above; now, Kerala has made it mandatory for intra-state movement for consignments valued at ₹10 lakh and above.
Conditions & Restrictions
- Part-B Details Not Required: Unlike regular EWBs, transporter details and vehicle information (Part-B details) cannot be updated to ensure security during gold transportation.
- No Consolidated EWB: There is no provision for generating a consolidated EWB that allows multiple consignments under one bill.
- No Multiple Vehicles: A single EWB cannot be used for multiple vehicles; each movement requires a separate EWB.
- Cancellation & Rejection: Facilities for cancellation and rejection remain available, similar to other EWBs.
Required Details for EWB Generation
- GSTINs of both the supplier and recipient.
- Complete addresses of both the supplier and recipient.
- Unique invoice number and invoice date related to the consignment.
Conclusion
This new mandate marks a significant shift in the movement of high-value commodities like gold and precious stones. While inter-state movement of gold already required an EWB, Kerala is now pioneering the intra-state application of this rule. This move is expected to enhance transparency, curb tax evasion, and strengthen compliance in the gold industry. Businesses dealing in these commodities should ensure timely EWB generation to avoid penalties and ensure smooth intra-state transportation.
For further details or assistance in compliance, feel free to reach out to our team.
