The Commissioner of State Goods and Services Tax Department (SGST) through the trade Circular No. 1/2025-Kerala GST has announced that e way bill is manadatory for intra state movement of gold and precious stones.
E-way bill generation has been made mandatory for intra-state movement of goods, as specified at serial numbers 4 and 5 of the Annexure appended to sub-rule (14) of rule 138, with effect from 20 January 2025, if the value of the consignment is t 10 lakhs and above, according to the notification issued by the Commissioner of State Tax with reference cited.
Following the notification’s release, the trade communities have expressed a number of concerns over the notification’s execution. To shed light on the matter and enable the smooth transportation of goods, the following directives and guidelines are issued:
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If the consignment value of the goods is Rs 10 lakhs or more, the registered person who initiates the intra-state movement of goods must create an e-way bill in Form GST EWB-OI before the movement may begin.
The items included include valuable or semi-precious stones, natural or cultured pearls, precious metals, and metals covered in precious metal. jewelry, goods, and other items made by goldsmiths and silversmiths. If the movement is related to a taxable supply, the value of the items, including tax, is taken into account for determining the Rs 10 lakh threshold for e-way bill creation.
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In this regard, taxpayers must provide the information in Part A of FORM GST EWB-OI in order to generate an e-way bill. It is not necessary to provide the information in Part B (transportation details). Even when using a non-motorized conveyance for transportation, e-way bills still need to be generated. In the event of a supply, non-supply, or supply from an unregistered individual, an e-way bill must be generated. The creation of an electronic way bill is required if the movement of the aforementioned commodities is started by a registered individual. However, the creation of an electronic way bill is not necessary in over-the-counter business-to-consumer transactions, since the movement of products terminates at the point of sale itself and the title is passed to an unregistered person (customer).
Subsequent to the initial movenent, if the goods are entrusted for hallmarking, job work, polishing etc to various entities/service providers, each transaction shall be supported by proper documents. At every stage, the person in possession of the goods must maintain records showing the quantities held, quantities entrusted for job work/hallmarking etc., and the balance in hand. These records must be made available to tax authorities for verification upon request.
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In cases where the supply is made at places other than the registered business place of the taxpayer for a temporary period like an exhibition, exchange mela, or the like, or who employs a travelling salesman or representative for display cum sale purpose, the e-way bill shall be generated at the commencement of the movement for the said purpose accompanied by registration certificate also.
On the occasion of such activities, they must maintain accurate records, including a stock register showing daily quantities held, disposed of, and balance in hand, as well as true and correct accounts of the transactions made. These records must be made available to the tax authorities for verification as and when required.
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