GSTN issues Advisory on Generation of EWB where the principal supply is Supply of services

1. Various trade organisations have complained that they are unable to generate EWB bills for the movement of products where the primary supplier is classified as a service because the E-way bill gateway does not allow them to generate E-way bills by entering SAC (Service Accounting Code-Chapter 99) alone.

2. To address this issue, taxpayers are encouraged to do the following:

a. “Information to be supplied prior to initiation of movement of goods and generation of e-way bill,” according to Rule 138 of the CGST Rules, 2017. (1) Every registered person who causes the movement of goods worth more than fifty thousand rupees in consignment value….” As a result, an E-way bill is necessary for the transfer of goods.

b. As a result, the e-way bill is not required to be generated in circumstances where the primary supply is solely a supply of services with no movement of products.

c. However, in circumstances where the primary delivery of service is accompanied by the movement of some items, an e-way charge may be generated. Such scenarios can emerge when providing services such as printing, construction contracting, catering, pandal or shamiana services, and so on. In such circumstances, an e-way bill can be generated by entering the HSN code of the goods as well as the SAC (Service Accounting Code) of the services.