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GST Council To Consider Making E-Way Bill Mandatory For Gold, Precious Stones

The council in its meeting on June 28-29 is likely to consider the report of the panel of state finance ministers on the feasibility of implementation of the e-way bill requirement for the movement of gold and precious stones

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The GST Council is likely to consider making an e-way bill mandatory for intra-state movement of gold or precious stones worth Rs 2 lakh and above and also e-invoicing mandatory for certain B2B transactions.

The council in its meeting on June 28-29 is likely to consider the report of the panel of state finance ministers on the feasibility of implementation of the e-way bill requirement for the movement of gold and precious stones.

The panel suggested that e-invoicing should be made mandatory for B2B transactions by all taxpayers supplying gold/precious stones and having an annual aggregate turnover above Rs 20 crore.

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Also, the GoM suggested that GST Network, in consultation with NIC, will work out the modalities and timelines for the implementation of e-invoicing for gold/precious stones.

The GoM suggested that states should be allowed to decide about the imposition of the requirement of an e- way bill for intra-state movement of gold and precious stones within their states.

"There will be a minimum threshold of Rs 2 Lakh, and the states can decide any amount including or above this amount as the minimum threshold for generations of e-way bill for intra-state movement of gold/precious stones in their state,” the GoM said in its report.

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The panel also suggested an officers committee from both centre and states examine the levy of GST on a reverse charge mechanism (RCM) basis on purchase of old gold by registered dealers/jewelers from unregistered persons.

Currently, businesses with a turnover of over Rs 50 crore have to mandatorily generate e-invoices for B2B transactions. However, the condition does not apply to gold and precious stones. 

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