e-Way Bill Applicability for Gold and Precious Stones

The e-Way Bill (EWB) system under the Goods and Services Tax (GST) regime governs the movement of goods across India. Typically, goods under Chapter 71 (which includes natural or cultured pearls, precious or semi-precious stones, and certain precious metals) have enjoyed exemptions from EWB requirements at the national level, with the exception of Imitation Jewellery (HSN 7117).

However, states can issue notifications to make EWB generation mandatory for specific goods within their jurisdiction. One such example is Kerala, which has mandated the generation of EWBs for intrastate movement of certain goods under Chapter 71. This article provides a detailed look at the e-Way Bill applicability for gold and precious stones, focusing particularly on the scenario in Kerala.

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E Way Bill now mandatory for movement of gold, precious metal within Kerala

Effective January 20, 2025, the National Informatics Centre (NIC) enabled a new feature in the e-Way Bill system: “EWB for Gold.” This was introduced to facilitate businesses in Kerala to generate EWBs for goods classified under Chapter 71 (except HSN 7117) for intrastate movement.

Who Needs This?

Any taxpayer or transporter moving gold, precious stones, and similar items within Kerala’s borders.

Why This Update?

The feature was rolled out in response to a state-specific notification mandating EWBs for these goods, ensuring clarity and legal compliance for businesses in Kerala.

Key Provisions of Notification

• Applicable Goods: Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and certain jewellery items under Chapter 71 (excluding imitation jewellery under HSN 7117).
• Intrastate Mandate: The requirement applies only to goods being moved within Kerala; interstate transportation may still follow the national-level exemptions unless another state’s regulations dictate otherwise.
• Compliance Requirement: Businesses must generate an e-Way Bill through the dedicated “EWB for Gold” option and carry a valid EWB while transporting these goods within the state.

What is eway bill?

An e-Way Bill (electronic waybill) is a digital document required for the movement of goods under the Goods and Services Tax (GST) regime in India. It is generated on the government’s e-Way Bill portal and serves as proof that goods are being transported in compliance with the applicable tax laws.

Goods Covered Under Chapter 71

To better understand which items are typically exempt (and how they may be treated differently in specific states), here’s an overview of key headings within Chapter 71:

• HSN 7101 – Natural or Cultured Pearls: Covers pearls in unworked or worked forms.
• HSN 7102 – Diamonds: Includes diamonds (whether or not worked, but not mounted or set).
• HSN 7103 – Precious Stones (Other than Diamonds) and Semi-Precious Stones: Encompasses rubies, sapphires, emeralds, and other colored gemstones.
• HSN 7104 – Synthetic or Reconstructed Precious/Semi-Precious Stones: Includes lab-grown or reconstructed gems.
• HSN 7105 – Dust and Powder of Natural or Synthetic Stones: Relates to ground or powdered forms of gemstones.
• HSN 7106–7109 – Silver, Gold, and Clad Metals: Covers raw forms of silver, gold (including those plated with other metals), and base metals clad with silver or gold.
• HSN 7110–7111 – Platinum and Base Metals Clad with Platinum: Refers to unwrought, semi-manufactured platinum and metals clad with platinum.
• HSN 7112 – Waste and Scrap of Precious Metal: Involves recyclable scraps of gold, silver, platinum, or clad metals.
• HSN 7113 – Articles of Jewellery: Concerns finished jewellery pieces made from precious metals or stones.
• HSN 7114 – Goldsmiths’ or Silversmiths’ Wares: Includes non-jewellery items (e.g., tableware, decorative objects) crafted from gold or silver.
• HSN 7115 – Other Articles of Precious Metal or Metal Clad with Precious Metal: Miscellaneous items not classified under other headings but made from precious metals.
• HSN 7116 – Articles of Pearls or Precious/Semi-Precious Stones: Includes objects primarily made from pearls or gemstones.
• HSN 7117 – Imitation Jewellery: Not exempt under Rule 138(14). E-Way Bill is mandatory if threshold limits are met.
• HSN 7118 – Coins: Legal tender or collector coins made from various metals.

National Exemption vs. State-Specific Rules - e-Way Bill Applicability  

National-Level Exemption

Under Rule 138(14) of the Central Goods and Services Tax (CGST) Rules, 2017, read with its Annexure S. Nos. 4 and 5, goods falling under Chapter 71—excluding Imitation Jewellery classified under HSN 7117—are typically exempt from the mandatory requirement of generating an e-Way Bill. This means in most states, taxpayers do not need to generate an EWB for transporting gold, precious stones, or related articles (other than imitation jewellery).

State-Specific Mandates

Individual states retain the authority to override this exemption if they deem it necessary. Consequently, while certain states do not require EWBs for gold or precious stones, others—like Kerala—have introduced specific notifications mandating EWB generation for intrastate movements of these goods.

Learn about: Intrastate vs Interstate GST meaning in India

GST Eway Bill for Imitation Jewellery (HSN 7117)

Imitation Jewellery classified under HSN 7117 is not covered by the exemption under Rule 138(14). It has always required an e-Way Bill for movement above prescribed thresholds—both interstate and intrastate—following the usual EWB generation process.

Separate Categorization

In the e-Way Bill portal, there is no special section for imitation jewellery. Stakeholders should continue using the standard “Generate New” option, entering the relevant HSN code (7117) and details as prompted.

Details Required for E-Way Bill Generation for Gold and Precious Stones

Although creating an e-way bill for gold and precious stones follows the standard procedure, taxpayers are advised not to fill out Part-B (vehicle/transporter details) for security reasons. Here are the key details you’ll need to provide:

• Supplier’s GSTIN: The GSTIN of the supplier dispatching the gold or precious stones within the state.
• Recipient’s GSTIN: The GSTIN of the recipient to whom the items are being delivered within the state.
• Complete Address: Include the full address of both the supplier and the recipient, including city, state, and PIN code.
• Invoice Details: Provide the unique invoice number for the consignment and the date on which the invoice was issued.
• Total Value: State the total declared value of the gold or precious stones being transported.
• HSN Code: Since these items fall under Chapter 71, ensure you use the correct HSN code for gold or precious stones.
• Validity Based on Distance: As with any regular e-way bill, the validity period is calculated based on the distance between the origin and destination PIN codes (pin-to-pin distance).

EWB Generation Steps for Gold and Precious Stones in Kerala

If you are transporting gold, diamonds, or other precious items under Chapter 71 within Kerala, here is an outline of how to generate the new “EWB for Gold”:

• Log In to the EWB Portal: Visit official website of eWay Bill and use your credentials to log in.
• Select ‘Generate New EWB’ or ‘EWB for Gold’ Option: Choose the “EWB for Gold” feature if it specifically appears for your profile when entering HSN codes under Chapter 71.
• Enter Shipment Details:
  • Bill From / Bill To: Provide the supplier and recipient GSTIN or address details.
  • Item Details: Specify the HSN code, description, quantity, and value of the goods.
• Transport Details: Include the mode of transportation (road, air, rail), the vehicle number, and the transporter ID if applicable.
• Verify and Submit: Double-check all entered data for accuracy. Click “Submit” to generate the EWB.
• Obtain EWB Document: Print or save a digital copy of the e-Way Bill. Keep it readily available during transit for verification by authorities.

Conclusion

While gold and precious stones (Chapter 71) generally enjoy a national exemption from e-Way Bill requirements, Kerala has chosen to mandate EWB generation for these high-value items within their jurisdictions. The newly introduced “EWB for Gold” feature in the e-Way Bill system ensures compliance for businesses operating in Kerala, streamlining the movement of precious commodities while maintaining transparency and security. Staying informed about both central and state-level regulations is crucial for businesses to avoid penalties and ensure smooth operations.

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FAQs on e-Way Bill Applicability for Gold and Precious Stones

Does the national exemption still apply to goods under Chapter 71?

Yes, at the national level, Rule 138(14) exempts these goods from EWB requirements. However, states like Kerala may issue notifications overriding this exemption for intrastate movements.

What about the interstate movement of gold and precious stones?

For interstate transactions, the national exemption typically applies unless the origin or destination state has a notification mandating EWBs.

 Is the “EWB for Gold” option mandatory for all states?

No. It is specifically relevant for Kerala as per the state’s notification. Other states without similar mandates do not require an EWB for Chapter 71 goods (excluding 7117).

Do I need to generate an EWB for Imitation Jewellery (HSN 7117)?

Yes. Imitation jewellery is outside the exemption, so you should follow the standard EWB generation process for HSN 7117.

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