e-Way Bill Requirements for Transport of Goods in Knocked Down Conditions (CKD or SKD)

A person generating the e-way bill must select the transaction type – “outward supplies” or “inward supplies”.  In the 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.

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, moving the goods in parts is more logistically convenient rather than moving 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 cover of a single invoice, but more than one vehicle is used to transport 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 three trucks.

Circumstances and industries where CKS/SKD transactions are prevalent

Often referred to as “screwdriver technology”, the 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, on many occasions, we would have purchased furniture from the furniture store and wondered how we could transport the same to our house and carry it to the 5th floor.  

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

e-way 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 a delivery challan along with the certified copy of the invoice
4. e-way 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 e-way bills must be generated for each consignment with the corresponding vehicle number.

Procedure for generation of e-way bill

Step- 1 Login to the e-way bill portal

Step- 2 Go to e-way bill>>generate new>>

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

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

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