Generation of E-Way Bill in Case of the Supply of Services

The Central Board of Indirect Taxes and Customs has published an advisory on September 16, 2021, concerning the generation of the e-way bill where the principal supply is the supply of services. The GST Network is the information technology drive for the indirect tax system. It has been announced that no e-way bills (EWB) are required if the principal supply is service and no supply of goods is involved. However, where the supply is a bundled supply with a mix of goods & services, e-way bills are mandated. The supplier has to obtain an e-way bill by entering codes for both. The CBIC highlighted that representations were received from numerous trade bodies asserting that they cannot generate an EWB bill for the movement of those goods where the principal supply is essentially a service. This is since there is no requirement for generating an E-way Bill for the supply of services.

Recognizing that there is no necessity for producing E-way Bill by entering SAC (Service Accounting Code-Chapter 99) on the E- way bill portal, the taxpayers, are suggested as below:

• Rule 138 of CGST Rules, 2017 requires information to be furnished before the initiation of the movement of goods. Filing of e-way bill is required where every registered supplier transports a consignment of goods worth more than fifty thousand rupees.
• In the case of the supply of service where there is no involvement in the movement of goods, the e-way bill is not required to be generated.
• However, in circumstances where the principal supply is service, but the movement of goods happens, an e-way bill is to be filed accordingly. In such matters, e-way bills are created by registering the items of the HSN code of the goods, along with the SAC (Service Accounting Code) of services involved.