Generation of e-way bill where the principal supply is supply of services
Advisory regarding e-way bill generation by those taxpayers where the principal supply is Supply of services
An advisory has been issued on 16th September, 2021 by the Goods and Services Tax Network (GSTN) for generation of e-way bill in relation to those taxpayers whose principal supply is Supply of Services. The advisory is as below:
Representations have been received from various trade bodies stating that they are not able to generate EWB bill for movement of those goods where their principal supply is classifiable as service, since there is no provision for generating e-way bill by entering SAC (Service Accounting Code- Chapter 99) alone on the E-way Bill Portal. To overcome this issue, the taxpayers are advised as below:
- Rule 138 of CGST Rules, 2017, inter alia states “Information to be furnished prior to commencement of movement of goods and generation of e-way bill- (1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees….” Thus, E-way bill is required to be generated for the movement of goods.
- Therefore, 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. Such situations may arise in case of supply of services like printing services, works contract services, catering services, pandal or shamiana services etc. 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.
For reading advisory click the following link: https://www.gst.gov.in/newsandupdates/read/504
