e-Way Bill Applicability for Gold and Precious Stones

Earlier, e-way bills were unnecessary for interstate or intrastate transit of gold, regardless of value. However, on 12th September 2022, the National Informatics Centre (NIC) introduced an update concerning the e-way bill generation for transporting gold and other precious stones under HSN Chapter 71. Further the GST Council in 2023 has recommended part-A of e-way bill for intra-state movement of gold and precious stones where the consignment value exceeds Rs. 2 lakh or any other limit notified by the respective states/Union Territories. CGST Rule 138F was notified to bring this into effect on 4th August 2023.

Continue reading as we discuss the e-way bill applicability on gold and precious stones and updates from the 50th GST Council meeting.

e-Way Bill Applicability For Movement Of Gold And Precious Stones

Following the guidelines set by the GST Council, the e-way bill requirement has been made mandatory for inter-state and intra-state movement of gold and other precious stones. 

Furthermore, certain functionalities have been modified for e-way bills generated for the movement of gold, including:

• Part-B details of the e-way bill, which typically include transporter information and vehicle details, cannot be updated by default.
• There is no provision to update transporter information.
• There is no option to generate a consolidated e-way bill, which allows multiple consignments under a single e-way bill.
• An extension of e-way bill validity is permitted without the need to revise the Part-B details.
• There is no option to include multiple vehicles for a single e-way bill.

However, the facilities for cancelling and rejecting e-way bills remain the same for moving gold and precious stones.

Details Asked For e-Way Bill Generation For Gold And Precious Stones

Creating an e-way bill for gold remains the same as other e-way bills. However, taxpayers must not update it with Part-B vehicle/transporter details for safety reasons. 

The details required to generate an e-way bill are as follows:

• GSTIN of the supplier dispatching the gold or precious stones within the state.
• GSTIN of the recipient to whom the gold or precious stones are being delivered within the state.
• The supplier and the recipient's complete address, including the city, state, and PIN code.
• The unique identification number of the invoice related to the gold or precious stones consignment.
• The date when the invoice for the gold or precious stones was issued.
• The total value of the gold or precious stones being transported.
• The Harmonized System of Nomenclature (HSN) code for gold and precious stones is under Chapter 71.

Plus, like any regular e-way bill, the validity is calculated based on the distance between the origin and destination PIN codes (pin-to-pin distance).

Intra-state movement requires e-way bill for gold and precious stones

The 50th GST Council meeting on 11th July 2023 moved to implement Rule 138F in CGST Rules, 2017, and SGST Rules, 2017 of the States. The rule was notified on 4th August 2023 vide the CGST Notification 38/2023. The rule mandates the requirement of an e-way bill generation for the intra-state movement of gold and precious stones falling under Chapter 71. 

To ensure flexibility and enable state-level customisation, the council has suggested that individual state governments be granted the liberty to set specific rules and threshold limits. 

According to the notification, Anyone transporting gold and precious metals valued at Rs. 2 lakhs or more within a state will be required to generate e-way bills, if the state/UT GST laws notifies so. Such movement could be either due to a supply or sale or other than sale/supply. Further, if a GST-registered person receives gold or precious stones above the consignment value limit given above from an unregistered person, then also part-A of e-way bill is needed to be furnished/generated.

This rule is intended to improve transparency and aid governments in monitoring the movement of valuable commodities, ultimately helping curb potential tax evasion.