Advisory: E-Way Bill for Goods Under Chapter 71
Dear Taxpayers and Transporters, This advisory aims to clarify the E-Way Bill (EWB) requirements for goods classified under Chapter 71 of the GST regime. Please review the following details carefully to ensure compliance with the applicable rules.
What is Chapter 71?
Chapter 71 of the GST classification pertains to:
- Natural or cultured pearls.
- Precious or semi-precious stones.
- Precious metals (e.g., gold, silver, platinum) and metals clad with precious metals.
- Jewellery.
- Goldsmiths’ and silversmiths’ wares (excluding imitation jewellery classified under HSN 7117).
These goods are of high value and are often subject to specific regulatory requirements to prevent tax evasion and ensure transparency in their movement.
What is Rule 138(14) of the Central Goods and Services Tax (CGST) Rules, 2017?
Rule 138(14) of the CGST Rules, 2017, along with its Annexure (S.Nos. 4 and 5), specifies the exemptions from the mandatory requirement of generating an E-Way Bill for certain goods. According to this rule:
- Goods classified under Chapter 71 (except imitation jewellery under HSN 7117) are exempt from the E-Way Bill requirement.
- This exemption is designed to reduce the compliance burden on businesses dealing with high-value goods like precious metals and jewellery.
Key Points of the Advisory
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Exemption from E-Way Bill Requirement
As per Rule 138(14), the following goods under Chapter 71 are exempt from the mandatory requirement of generating an E-Way Bill:- Natural or cultured pearls.
- Precious or semi-precious stones.
- Precious metals and metals clad with precious metal.
- Jewellery.
- Goldsmiths’ and silversmiths’ articles.
Note: This exemption does not apply to goods classified under HSN 7117 (Imitation Jewellery), which continue to require an E-Way Bill.
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Withdrawal of Generation Facility for E-Way Bill for Goods Under Chapter 71
- The National Informatics Centre (NIC) had previously provided an option to generate EWBs for goods under Chapter 71 (except HSN 7117) under the category “EWB for Gold” on the EWB portal.
- It has been observed that many industry stakeholders voluntarily generated EWBs for these goods using this facility.
- Clarification: The facility to generate EWBs for goods under Chapter 71 (except HSN 7117) has now been withdrawn.
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Exception for Intra-State Movement in Kerala
- For the intra-state movement of goods under Chapter 71 (except HSN 7117) within the state of Kerala, the generation of an E-Way Bill has been mandated vide Notification No. 10/24-State Tax dated 27/12/24.
- An advisory dated 27.01.2025 has already been issued in this regard.
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Compliance Requirements
- Taxpayers and transporters are advised that EWB generation is not required for goods under Chapter 71 (except HSN 7117) unless the movement is within the state of Kerala.
- For all other states, stakeholders must ensure compliance with the exemption provisions under Rule 138(14).
Action Points for Stakeholders
- Review Your Processes: Ensure that your systems and processes align with the updated E-Way Bill requirements.
- Kerala-Specific Compliance: If you are transporting goods under Chapter 71 within Kerala, generate an E-Way Bill as per the state’s notification.
- Stay Updated: Regularly check for updates on the GST portal and advisories from the GSTN to stay compliant.
How TaxPower GST Software Can Help
Navigating E-Way Bill requirements and GST compliance can be challenging, but TaxPower GST Software makes it effortless. Here’s how TaxPower GST can assist you:
- Automated E-Way Bill Generation: Simplify generating E-Way Bills while generating e-invoices.*
- Real-Time Updates: Stay aligned with the latest GST rules and notifications.
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Conclusion
This advisory clarifies the E-Way Bill requirements for goods under Chapter 71, ensuring smooth compliance for taxpayers and transporters. By leveraging tools like TaxPower GST Software, you can simplify your compliance processes and focus on growing your business.
