New

Published on:

January 20, 2025

Viraaj Vashishth

Blog |

Explore GST

GST Rules

Gold & Precious Stones: E-Way Bill Guide for Intra-state & Inter-state Transport

These days, gold and gemstones e-way bills are gaining more focus with the convenience offered by the digitalized procedure. The Goods and Services Tax which was introduced in India changed the country's indirect tax system permanently. The government has always tried to roll out new systems like the e-way bill to keep track of movement of goods. Previously, gold and gems were always exempt from the e-way bill where their movement required such documents. Recent changes in policies have somewhat changed those requirements which creates the need to get updated on how the current e-way bill compliance works for gems and precious stones.

Evolution of e-Way Bill Requirements for Gold and Precious Stones

The requirement of e-way bill for interstate or intrastate for gold and gems for e-way bill was not incorporated earlier irrespective of the value of consignment. The exemption was in place due to the low valued and high priced nature of these goods alongside how little these items are in volume. Because of these security issues, no legislation was set up. However, in order to improve compliance and prevent tax avoidance, the National Informatics Center (NIC) did introduce an upgrade on 12th September 2022 that was equally helpful. E-way bills can be generated for items that include HSN Chapter 71, which includes gold and precious stones.

Key Regulatory Developments

On July 11, 2023, the transformation of policy was experienced during the 50th GST Policy Council Conference. During this meeting, it was advised that generation of Part A of e-Way Bill must be made compulsory for the movement of gold and gemstones. The bill is required when the value of the consigned exceeds Rs.2,00,000 or other amounts set by U.Ts or States. This advice brought about the new rule 138F in the Central Goods and Services Tax (CGST) Regulations, 2017, which was officially issued on 4th August 2023.

Current Applicability of e-Way Bills

While revising regulations, it has specified how e-Way Bills would work for gold and precious stones as follows:

1. For interstate movements- the e-Way Bill will be required irrespective of the value on the consignment.

2. For intrastate movements- e-Way bills will not be required unless a notification from the particular state requires it. It is expected that the threshold will be set at Rs.2,00,000 but states can alter this threshold based on their considerations.

You Can Also Read: A step-by-step guide to E-Way Bill integration

Procedural Aspects of e-Way Bill Generation

The process of preparing an e-Way Bill for gold and precious stones is outlined below. It includes several steps which are important:

1. GST Registration: It is essential for both the buyer as well as the seller to register for GST. Both participants' GST Identification Numbers (GSTIN) are required so that an e-way bill is created.

2. Entering the GST Portal: Users can log into the GST portal by submitting their login credentials. There is a portal for e-Way Bill generation.

3. Completing Part-A of Form GST EWB-01: In this case, the following requires submission:

a. Invoice Details: Which pertains to invoice number, date, and total value.

b. Consignment Value: Total value of goods being shipped.

c. HSN Code: Which pertains to the code under which goods are categorized (in this instance, Chapter 71 for gold and precious stones).

d. Dispatch and Delivery Addresses: Where complete addresses along with respective PIN codes are provided.

e. Part-B particulars: When transporting gold and additional precious stones, gold transporters Part-B as well as vehicle specific details which include the transporter's name may generally be subject to restriction to avoid tampering with security measures. Therefore, to avoid any possible changes being made inadvertently by the user, the system may be set with a restriction on the data inputting section.

Special Considerations

There are some peculiar considerations for the e-Way Bill system of gold and precious stones that differs from the conventional:

1. Transporter’s Details: The system for e-Way Bills does not permit changes to the transporter’s information after the creation of the e-Way Bill as a precautionary measure.

2. Consolidated Remittance E-Way Bills: Unlike other commodities, e-Way Bills for gold and precious stones do not allow for consolidated e-Way Bills which are issued for more than one consignment.

3. Extension of E-Way Bill Validity: Extensions to the validity duration of an e-Way Bill can be made without the necessity of changing Part-B details. This proves beneficial in case of unforeseen transit delays.

4. E-Way Bill Cancellation/ Rejection: Procedures for cancellation or rejection of an e-Way Bill remain the same for all other goods.

State-Specific Regulations

Merely, the national principles set out govern, all additional and changes may be created by the different states:

1. Threshold Limits: Different states may set different thresholds of the value of the consignment for the generation of e-Way Bills. For instance, Karnataka has made it compulsory to issue e-Way Bills for movements of gold and precious stones valued at Rs.2 lakh or more within the state.

2. Implementation Timelines: The timing of these requirements may differ between states, therefore stakeholders must remain

You Can Also Read: E-way bill

Conclusion

Because of changes in regulations worldwide, it has become necessary to e-Way bill for gold and precious stones. All parties should stay in touch and keep up with both the central and the state rules. This will enable them to function without any issues and penalties. We recommend frequent checks of the official GST site and its notifications to keep up with changes.

FAQs

1. Can you tell me what the GST login is, and why it is relevant in generating an e-way bill?

Taxpayers launch an official portal and logs in with their security credentials. This is the GST login, and it allows them to create an e-way bill when transporting goods with high value, including gold and precious stones.

2. I already have my GST number. So, how do I go ahead with the generation of an e-Way bill?

After getting your GST, you should log in to the e-way bill system via your GST number. There's a section labeled 'Generate e-Way Bill.' Click that and enter the required details.

3. Do I need the e-way bill within the same state to transport gold?

Yes, in many regions, gold or precious stones transportation via intra state movement exceeding Rs.2 lakh needs e-Way bill. However, it may change due to announcements made by the state.

4. Can I make an e-Way Bill for gold on the GST website?

Yes, it's possible to produce an e-Way Bill on the GST website or on the separate e-waybill website after entering the details of the items being moved.

5. What is the minimum amount of Rs.2 lakh transportation value for gold e-way bill requirements?

The minimum amount for an e-Way Bill for transport of gold jewels and other stones is Rs. 2 lakh inside the state unless guidelines of a certain state specifically state otherwise.

6. Can one enter e-way bill gold or precious stones shipper information on the e-Way Bill system?

The e-Way Bill system does not allow the entry of shipper information of gold and precious stones in order to tighten the security of the transport.

7. What are the consequences for neglecting to generate an e-Way Bill for translocation of gold?

Neglecting to generate an e-Way Bill for gold or valuable stones is subject to sanctions, confiscation of items, or prosecution concerning the provisions of the GST Act.

8. Am I allowed to extend the period of use of an e-Way Bill for translocating gold?

Yes, the e-Way Bill system permits the lengthening of the Validity of e-Way Bill concerning the transportation of gold and valuable stones so long as there has been no change to the information on Part B.

9. In what ways does the use of an e-Way Bill benefit the fact of compliance in trade in the gold business?

The e-Way Bill system is aimed at ensuring free movement of goods even within inter-state boundaries so as to enhance revenue collection while curbing the tendency of tax evasion related activities by tracking the transportation of expensive goods such as gold and precious gems under the GST tax slabs.