GST Network, the information technology backbone for the indirect tax system, on Thursday, said no e-way bills (EWB) required if principal supply is service and no goods are involved. However, in case of mix of goods & services, E-way bills will be required to be generated by entering codes for both.
E-way bill is required to be generated for the movement of goods if their value is ₹50,000 or more. It is kind of a proof that tax has been paid on the goods being taken from one State to another or even from one city to another within a State
“In cases where the principal supply is purely a supply of service and involving no movement of goods, the e-way bill is not required to be generated. However, in cases where, along with the principal supply of service, movement of some goods is also involved, e-way bill may be generated,” GSTN said in an advisory.
Further, it explained there may be situations when there is supply of services like printing services, works contract services, catering services, pandal or shamiana services, etc. along with movement of goods. “In such cases, e-way bill may be generated by entering the details of HSN code of the goods, along with SAC (Service Accounting Code) of services involved,” it said.
Trade bodies’ query
It mentioned that representations have been received from various trade bodies stating that they are not able to generate EWB for movement of those goods where the principal supply is classifiable as a service, since there is no provision for generating an e-way bill by entering the SAC. In an effort to resolve this issue, the advisory was issued.