CA Rohit Surana & CA Sunayna Banthia
E WAY BILL RULES FOR INTRA-STATE MOVEMENT OF GOLD, PRECIOUS STONES, ETC.
Rules relating to generation of e-way bills for INTRA-STATE movement of gold, precious stones, etc. have been notified vide Notification No. 38/2023, dated 04-08-2023 – The CGST (Second Amendment) Rules, 2023. However, the power has been transferred to the Commissioner of State tax or Union territory tax so as to mandate these provisions in their respective states. Therefore, the following rules shall be applicable as and when respective states issue their notifications. Currently, West Bengal has not notified the same yet.
Following are the key noteworthy points in this respect:
1. Applicable for – Intra State Supply i.e. movement within the state only.
2. Threshold limit for applicability: Consignment value to be notified by each state, not below Rs. 2 lakhs. Consignment value includes CGST/SGST charged and excludes value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.
3. Items covered: –
a) Jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71) [Imitation Jewellery (7117) shall however continue to follow normal e-way bill procedures]
b) Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71)
4. E-way bill required: –
a) in relation to a supply; or
b) for reasons other than supply, such as job work, goods sent on approval, goods sent for hallmarking, movement to/from Karigar, intra-branch transfers within the state etc.; or
c) due to inward supply from an un-registered person such purchase from unregistered vendors etc.
In-store Sales/Purchases:
A relevant question herein is whether the above e-way bill provisions shall be applicable for in-store sales/ old gold purchases in the store itself. It is to mention herein that e-way bill provisions are made applicable for every registered person who causes movement of goods. In respect to in-store sales the ownership and possession are transferred to the recipients in the store itself and movement of goods is being initiated by the customers. Therefore, in such cases and in our humble opinion, the movement of goods is not being caused by the supplier of goods and hence no requirement of e-way bill shall arise.
Similarly, many a times, unregistered customer visits the store or showroom with old gold for the purpose of exchange or sale. Whether e-way bill will be required as made applicable to inward supplies from unregistered person? In such cases as well, there is no movement caused by the registered person and therefore in our opinion, e-way bill shall not be required to be generated in these cases.
However, we await State rules and clarifications to further get clarity on applicability of individual transactions.
5. Procedural aspect – Only Part A of FORM GST EWB-01 to be generated. The same may be furnished by e-com operators or courier agency also where the goods to be transported are supplied through them. The generation of e-way bill for gold does not require details of part B i.e. vehicle number and transporter details etc.
6. Exemption from e way bill generation– where goods are being transported: –
a) from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs;
b) under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs station or customs port to another customs station or customs port, or under customs supervision or under customs seal.
c) Key points: –
√ E-way bill portal: https://docs.ewaybillgst.gov.in
√ Extension of e-waybill is allowed without updating Part-B details.
√ Cancellation or rejection by registered recipient of e-waybill can be done within 24 or 72 hours of generation of e way bill respectively.
√ The e-Waybill for Gold is available as a separate option in the main menu in the portal.
√ The validity of such e-Way bills shall be calculated based on the pin to pin distance of origin and destination. (Upto 200 km- one day, for every 200 km or part thereof- one additional day in cases other than Over Dimensional Cargo)
√ In case of hand delivery: – It has been earlier clarified that in case of movement of goods by public transport, e-way bill shall be generated by the person who is causing the movement of the goods. We however await specific clarification for Jewellery industry.
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