E-Way Bill Requirement for Goods Under Chapter 71: Key Clarifications and Updates
Introduction
In a significant regulatory update, the Goods and Services Tax Network (GSTN) has clarified the E-Way Bill (EWB) requirements for goods classified under Chapter 71 of the Central Goods and Services Tax (CGST) Rules, 2017. This chapter includes precious metals, jewellery, and gemstones, with specific exemptions for certain categories. The advisory, issued on February 6, 2025, highlights changes affecting the movement of these goods and provides essential guidance for industry stakeholders.
Understanding Chapter 71 and EWB Exemptions
Chapter 71 of the CGST Rules encompasses natural or cultured pearls, precious and semi-precious stones, and jewellery crafted from precious metals. Notably, these goods are exempt from the mandatory requirement of generating an E-Way Bill, with the exception of items classified under HSN 7117, which covers imitation jewellery.
Previously, the National Informatics Centre (NIC) had introduced an option allowing businesses to voluntarily generate EWBs for goods under Chapter 71 (excluding imitation jewellery) for intra-state movements in Kerala. This feature, labeled as “EWB for Gold,” facilitated smooth documentation and tracking of high-value transactions.
Withdrawal of EWB Generation Option
Despite its availability, the voluntary EWB generation option led to widespread use by businesses transporting goods under Chapter 71. However, the latest advisory explicitly states that the facility to generate EWBs for these goods has now been withdrawn. This means that businesses dealing in jewellery, gold, and precious stones can no longer generate an EWB for these items unless legally mandated.
State-Specific Mandates: Kerala’s Requirement
While the national mandate exempts Chapter 71 goods from EWB requirements, Kerala has implemented its own rule. As per Notification No. 10/24-State Tax dated December 27, 2024, the generation of an EWB is mandatory for intra-state movement of goods under Chapter 71 in Kerala. This regulation aims to enhance tax compliance and prevent tax evasion in the gold and jewellery sector. An earlier advisory dated January 27, 2025, had already informed businesses about this requirement.
Implications for Businesses and Transporters
The withdrawal of the voluntary EWB option has significant implications for traders, jewellers, and transporters:
- No EWB Required Nationwide – Businesses dealing in Chapter 71 goods (except imitation jewellery) no longer need to generate an EWB for interstate movement.
- Mandatory EWB in Kerala – Transporters and businesses must comply with Kerala’s rule for intra-state movement.
- Regulatory Compliance – Stakeholders are advised to stay updated with jurisdictional tax authorities to avoid penalties or compliance issues.
Final Takeaways
The GSTN advisory serves as a crucial update for industry players dealing in high-value jewellery and precious metals. While the national requirement for EWB has been relaxed, Kerala’s regulation still mandates strict compliance. Businesses must stay informed about state-specific rules and adapt their logistics and documentation processes accordingly.
For further clarifications, stakeholders are encouraged to reach out to the GST Helpdesk or their respective tax authorities to ensure seamless compliance and uninterrupted trade operations.
