The Kerala GST Department issued very important instructions vide Trade Circular No. 1/2025-Kerala GST dated January 28, 2025, mandating e-way bills for intra-state movement of gold and precious stones valued at Rs. 10 lakhs or more, effective from January 20, 2025. This follows notifications dated December 27, 2024, January 8, 2025, and January 17, 2025. Registered persons must generate e-way bills using Form GST EWB-01 for goods listed in serial numbers 4 and 5 of the Annexure to Rule 138, including natural or cultured pearls, precious stones, metals, and jewellery. The Rs. 10 lakh threshold includes tax for taxable supplies. E-way bills are required even for non-motorized transport and non-supply movements. However, over-the-counter B2C transactions ending at the point of sale do not require e-way bills. For job work, hallmarking, or temporary sales activities like exhibitions, e-way bills must be generated with proper documentation and records maintained for verification by tax authorities.
I. As per the notification issued by the Commissioner of State Tax vide reference cited, generation of e-way bill has been made mandatory for intra-state movement of goods, specified at serial numbers 4 and 5 of the Annexure appended to sub-rule (14) of Rule 138 with effect from 20th January 2025, if the value of the consignment is Rs. 10 lakhs and above.
Subsequent to the issuance of the notification, various doubts have been raised by the trade communities on the implementation of the provisions of the notification. In order to clarify the issue and to facilitate hassle-free movement of goods, the following instructions and guidelines are issued:
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- Every registered person who causes the intra-state movement of goods mentioned at Sl No 4 and 5 of the Annexure appended to Rule 138 are required to generate e-way bill in Form GST EWB-01 before the commencement of such movement if the consignment value of the good is Rs. 10 lakhs and above.
II. The goods specified at serial numbers 4 and 5 of the above mentioned Annexure are:
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- Natural or cultured pearls and precious or semi precious stones; precious metals and metals clad with precious metal (Serial No.4)
- Jewellery, goldsmiths’ and silversmiths’ articles, wares and other (Serial No. 5)
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III. To calculate the Rs. 10 lakh threshold for e-way bill generation, consider the value of goods inclusive of tax: if the movement is in relation to a taxable supply.
IV. For generating an e-way bill in this regard, taxpayers are required to furnish the details in Part A of FORM GST EWB-01. Furnishing of information in Part B (transportation details) are not required.
V. E-way bills must be generated even when transportation is by a non-motorised conveyance.
VI. The generation of e-way bill is mandatory in the event of supply, non-supply, or supply from an unregistered person. If the movement of above mentioned goods is initiated by a registered person, generation of e-way bill is mandatory.
VII. However, in the cases of over-the-counter B2C transactions, where the movement of goods ends at the point of sale itself and the title is transferred to an unregistered person (customer), generation of e-way bill is not required. In cases where the movement is caused by a registered person for reasons other than supply such as job work, hallmarking etc, an e-way bill shall be generated at the time of commencement of the movement accompanied by a Delivery Challan.
VIII. Subsequent to the initial movement, 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.
IX. 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.
The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/02/Trade-Circular-No.-1_2025-Kerala-GST.pdf
