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EWay Bill requirements for transport of Goods in Knocked down conditions( CKD or SKD)

Updated on:  

08 min read

A person generating the eway bill is required to select the transaction type – “outward supplies” or “inward supplies”.  In case of “outward supplies” he is also required to select the sub-type which consists of various options like “Supply, Exports, Job Work, SKD / CKD, Recipient not known, for own use, Exhibition or Fair, Line Sales or Others.

Latest Update

29th August 2021
From 1st May 2021 to 18th August 2021, the taxpayers will not face blocking of e-way bills for non-filing of GSTR-1 or GSTR-3B (two months or more for monthly filer and one quarter or more for QRMP taxpayers) for March 2021 to May 2021.

4th August 2021
Blocking of e-way bills due to non-filing of GSTR-3B resumes from 15th August 2021.

1st June 2021
1. The e-way bill portal, in its release notes, has clarified that a suspended GSTIN cannot generate an e-way bill. However, a suspended GSTIN as a recipient or as a transporter can get a generated e-way bill.
2. the mode of transport ‘Ship’ has now been updated to ‘Ship/Road cum Ship’ so that the user can enter a vehicle number where goods are initially moved by road and a bill of lading number and date for movement by ship. This will help in availing the ODC benefits for movement using ships and facilitate the updating of vehicle details as and when moved on road.

18th May 2021
The CBIC in Notification 15/2021-Central Tax has notified that the blocking of GSTINs for e-Way Bill generation is now considered only for the defaulting supplier’s GSTIN and not for the defaulting recipient or the transporter’s GSTIN.

17th March 2021
1. The e-way bills portal has released an update stating that e-way bills cannot be generated with only SAC codes (99) for services. There should be a minimum of one HSN code belonging to goods mentioned mandatorily.
2. Vehicle type ODC is provisioned for transport mode ‘Ship’.
3. Transporters are provided with a report of e-way bills based on the assigned date.

22nd December 2020
1. The CBIC increased the distance per day in case of goods transported through vehicles, other than the over-dimensional cargo, for determining the validity, as follows:
(a) It is one day – For a distance of up to 200 km as against earlier 100 km
(b) An additional day is taken- For every additional 200 km or part thereof, as against previously notified additional 100 km or part thereof
2. Regarding blocking of the e-way bill where a taxpayer fails to file GSTR-3B, the provision has been amended to replace two or more months with two or more tax periods. The same has been changed to include the quarterly return filers.

16th November 2020
1. According to Rule 138E (a) and (b) of the CGST Rules, 2017, the e-way bill generation facility of a taxpayer will be restricted, if the taxpayer fails to file their Form GSTR-3B returns or statement in Form GST CMP-08, for tax periods of two or more.
2. On 1st December 2020, the system will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08, for the class of taxpayers to whom it applies, and restrict the generation of e-way bill in case of:
(a) Non-filing of two or more returns in Form GSTR-3B for the months up to October 2020; and
(b) Non-filing of two or more statements in Form GST CMP-08 for the quarters up to July to September 2020
3. From 1st December 2020 onwards, blocking of e-way bill generation facilities would be made applicable to all taxpayers, irrespective of their Aggregate Annual Turnover (AATO), according to the terms of Rule 138E (a) and (b) of the CGST Rules, 2017.
4. The blocking will take place periodically from 1st December 2020 onwards.
5. To continue generating e-way bill on the e-way bill portal, taxpayers are advised to file their pending GSTR-3B returns/GST CMP-08 statements immediately.

Let’s understand what it means by selecting CKD/SKD here in detail:

Semi Knocked Down/Completely Knocked down( CKD/SKD)

In certain cases, the goods required to be transported are so huge that it is practically impossible to carry the same in a single transport vehicle.  Additionally, in certain cases, it is logistical convenient to move the goods in parts rather than move the entire goods in a single transport. These are referred to as Semi Knocked Down (SKD) or Completely Knocked Down (CKD) goods.  

In these cases, the goods are being supplied under the cover of a single invoice but more than one vehicle is used for transport of such vehicles.
Example- Crane is being supplied from Gurgaon to Kerala under a single invoice but for logistical convenience, the crane is partially knocked down and shipped in say three trucks.

Circumstances and Industry where this transaction type is prevalent

Often referred to a “screw driver technology”, Transport of goods in SKD/CKD form is prevalent in many industries like Motor Car Industries, Large Machine Manufacturing Industry etc where the unassembled parts are transported to the showroom using more than one transport vehicle and these are then assembled and sold in the showrooms. In fact, at many occasions, we would have purchased furniture from the furniture store and wonder how we will be able to transport the same to our house and also carry it to the 5th floor.  

But after settling our bills, we are surprised at the compact package which the store owner hands over to us which contains the entire furniture in CKD form which comes with a manual and lot of screwdrivers.  The manual helps us assemble the entire piece

Eway bill requirement for SKD/CKD

For the purpose of movement of goods which are under SKD / CKD condition, the supplier needs to follow the below procedure

  1. Raise a single invoice for the supply of goods, though getting transported via different vehicles
  2. Raise delivery challan for each of the vehicles drawing reference to the invoice number (same for all the delivery challans)
  3. Each Vehicle to carry delivery challan along with the certified copy of the invoice
  4. Eway bill to be generated for every delivery challan generated for different vehicles
  5. Original invoice to be sent along with the last consignment

Example – Machine “A” having a single invoice, unassembled and transported through 4 vehicles. In this case 4 delivery challans with 4 EWay bills has to be generated for each consignment with corresponding vehicle number.

Procedure for generation of eway bill

Step- 1 Login to EWay bill portal

Step- 2 Go to Eway bill>>generate new>>

4

Step- 3 Select Transaction Type as “Outward” and subtype as “SKD/CKD”

5

Update the Delivery Challan Details and complete Part A and Part B to generate the Eway Bill against each such delivery challan.

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