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A Group of State Finance Ministers (GoM) has agreed to the suggestion of bringing the e-Way bill for intra-State movement of gold.
“It will be up to a State whether it wants to introduce it or not,” Sushil Kumar Modi, Deputy Chief Minister of Bihar and a member of GoM told BusinessLine after the meeting. The virtual meeting was presided over by Finance Minister of Kerala, TM Thomas Issac, and attended by Deputy Chief Minister of Gujarat and Modi on Friday.
“Now, officers will work out modalities and propose changes in rules. Then a formal proposal will be presented before the GST Council for final decision,” Modi said. The GoM has been assigned to examine the feasibility of implementation of e–Way bill requirement for movement of gold and precious stones and to suggest alternatives ways and mechanisms for controlling tax evasion.
An e-Way bill is a kind of electronic challan which shows that tax has been fully paid before goods are moved from one place to other, within the State (intra-State) or outside the State (inter-State). It is required for carrying any consignment of goods of value exceeding ₹50,000. This threshold can be higher for intra-State activities. It is generated from the GST Common Portal for e-Way bill system by the registered persons or transporters who cause movement of goods before the commencement of such movement.
An e-Way bill has two parts – A & B. While Part A has invoice details, Part B has details about vehicles such as registration number etc. Since such details can create a security problem, gold and precious stones were exempted from the e-Way bill.
Final call by GST Council
Modi said that States have the right to exempt particular goods from e-Way bill within the State. Now, there is an issue of addition. So a final call will be taken by the GST Council. He also informed that Section 68 of CGST Act, when read with sub-rule 138 (A) of CGST rules, makes it mandatory for a person-in-charge of conveyance to carry the invoice or bill of supply or delivery challan along with the e-Way bill. This means that in case of exemption from the e-Way bill, there is a way to check tax evasion.
Gujarat Deputy CM said that Ahmedabad airport alone handles over one-fifth of gold being imported to India. So, making e-Way bill mandatory for inter-State movement of gold and precious stones will make the process complex. Kerala FM suggested higher threshold and exemption for job work for inter-State e-Way bill, but it was said that such things would make the issue more complicated.
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