GST Council to consider making E-way bill mandatory for gold & precious stones

The GST Council is likely to consider mandating the use of an e-way bill for intrastate transportation of precious stones or gold valued at more than Rs.2 lakh, as well as e-invoicing for some B2B transactions by all taxpayers supplying gold/precious stones and having annual aggregate turnover above Rs.20 crore.

The suggestion was made by a ministerial panel under the direction of Kerala’s Finance Minister, KN Balagopal.

The report of the panel of state finance ministers on the viability of implementing an e-way bill requirement for the movement of gold and precious stones is likely to be taken into consideration by the council at its meeting on June 28-29.

Additionally, it has been stated that the GST Network will establish the timetables and details for the implementation of e-invoicing for gold and precious stones in conjunction with NIC. According to the GoM’s report, “there will be a minimum threshold of Rs 2 Lakh, and the states can set any value including or beyond this amount as minimum threshold for production of e-way bill for intra-state movement of gold/precious stones in their state.”

The panel also recommended that an executive committee from the federal government and the states look into the possibility of charging registered dealers and jewellers who buy used gold from unregistered individuals with GST using the reverse charge mechanism (RCM).

For B2B transactions, e-invoice generation is currently required of companies with a turnover of over Rs 50 crore. Gold and valuable stones are exempt from the restriction, though.

The Council will also debate rate increases suggested by the fitment committee for goods including cut and polished diamonds (1.5 percent from 0.25 percent), tetra packs (18 percent from 12 percent), and rate cuts for ostomy gadgets such waterproof pouches for collecting bodily waste (nil from 12 per cent). Additionally, the fitment committee has suggested a standard implant rate of 5% for orthopedic procedures (trauma, spine and arthroplasty implants).