GST Advisory-E-Way Bill Rules for Chapter 71 Goods: Exemptions & Kerala’s Mandate Explained!

No E-way bill is required to be generated for transport of goods falling under Chapter 71 viz., Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal, Jewellery, goldsmiths’, and silversmiths’ articles. However, in the state of Kerala, an E-way bill is required for intra-state movement of such goods. Therefore, a new option “EWB for Gold” is enabled on the E-Way bill portal. GSTN has now issued an advisory to resolve queries related to the same. 

Let's understand the changes!

GSTN Advisory dated 6^th February 2025

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ADVISORY ON E-WAY BILL GENERATION FOR GOODS UNDER CHAPTER 71

Feb 6th, 2025

Subject: Clarification on E-Way Bill Requirement for Goods under Chapter 71

Rule 138(14) of the Central Goods and Services Tax (CGST) Rules, 2017, read with its Annexure S.Nos. 4 and 5, states that goods covered under Chapter 71 viz., Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal, Jewelry, goldsmiths’, and silversmiths’ articles, except those classified under HSN 7117(Imitation Jewellery), are exempt from the mandatory requirement of generating an E-Way Bill.

According to the introduction of the E-Way Bill (EWB) for goods classified under Chapter 71, excluding HSN 7117 (Imitation Jewelry), in the state of Kerala for intra-state movement, the National Informatics Centre (NIC) has provided an option to generate EWBs for goods covered under Chapter 71 except 7117 under the category "EWB for Gold" on the EWB portal.

It has been observed that various industry stakeholders have voluntarily been generating EWBs for goods under Chapter 71 due to the availability of this option in the EWB system. In this regard, it is clarified that while the system previously allowed EWB generation for goods under Chapter 71, this facility has now been withdrawn.

Accordingly, taxpayers and transporters engaged in the movement of goods under Chapter 71 (except HSN 7117) are advised that EWB generation is not required. However, it may be noted that for the intrastate movement of such goods within the state of Kerala, the generation of an EWB has been mandated vide Notification No.10/24-State Tax dated 27/12/24 issued by the state of Kerala. An advisory dated 27.01.2025 has already been issued in this regard.

Industry stakeholders are requested to take note of this clarification and ensure compliance with the applicable regulatory provisions.

For any further clarifications, stakeholders may contact the GST Helpdesk or approach their respective jurisdictional tax authorities.

Date: 06/02/2025

Thank you,

Team GSTN

Key Highlights

1. E-Way Bill Exemption for Chapter 71 Goods: Goods under Chapter 71, including precious metals, pearls, and Jewellery, are exempt from generating an E-Way Bill, except imitation Jewellery (HSN 7117).
2. Kerala’s Special Requirement: While the national exemption applies, the state of Kerala mandates the generation of an E-Way Bill for the intra-state movement of Chapter 71 goods (excluding HSN 7117) as per Notification No. 10/24-State Tax dated 27/12/2024.
3. EWB for Gold Option: The National Informatics Centre (NIC) has introduced a new option to generate EWB for these goods named the “EWB for Gold” option. However, this option is to be taken only for intra-state movement of such goods in Kerala. 
4. No E-way bill required for other states: It is specifically stated in the advisory that an e-way bill for goods falling under chapter 71 (except 7117) is not required. Therefore, the option to generate an e-way bill from the regular e-way bill system is now removed. E-way bills for such goods can be generated only for movement in Kerala from the new option “EWB for Gold”.

Conclusion

The recent advisory by GSTN provides much-needed clarity on the E-Way Bill requirements for goods under Chapter 71. While these goods remain exempt from E-Way Bill generation at the national level (except for imitation Jewellery under HSN 7117), Kerala has implemented a special mandate for intra-state movement. The introduction of the “EWB for Gold” option streamlines compliance specifically for Kerala, ensuring businesses adhere to local regulations. Industry stakeholders must stay informed about these updates to avoid unnecessary compliance burdens and ensure smooth transportation of goods. For further queries, taxpayers can reach out to the GST helpdesk or jurisdictional authorities.

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