GST Council is considering requiring e-way bills for precious stones, gold

24 Jun 2022 , 09:12 AM

The GST Council is likely to explore 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.

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.

The panel recommended that all taxpayers who provide gold or precious stones and have yearly aggregate revenue of above Rs 20 crore make e-invoicing a requirement for B2B transactions.

The GoM also recommended that GST Network work out the specifics and schedules for the introduction of e-invoicing for gold and precious stones in cooperation with NIC.

The GoM recommended that states be given the option to determine whether to demand an e-way bill for intra-state transportation of gold and precious stones.

The GoM stated in its report that there would be a minimum threshold of Rs 2 Lakh and that the states can choose any value up to or above this amount as the minimum threshold for the production of e-way bills for intra-state movement of gold and 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 jewelers 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 above Rs 50 crore. Gold and valuable stones are exempt from the restriction, though.