The E-Way Bill (EWB) mechanism was introduced in 2018 to enable the smooth movement of goods for inter-state and intra-state supplies. E-Way Bill is an electronic document generated where there is a supply or return or inward supply of goods from an unregistered person. There are various conditions for generation of E-Way bills. Refer to a detailed article on E-Way bill here.
In this article, we will discuss the E-Way Bill requirements for the transportation of goods in the knocked-down condition:
Goods are said to be in a knocked-Down condition when they are disassembled, to facilitate convenient transportation from one place to another. This practice is prevalent in the automobile industry, furniture industry, etc. There are two types of knocked-downs:
- Completed Knocked-Down (Commonly known as CKD)
- Semi Knocked-Down (Commonly known as SKD)
Each of these serves its own purpose. For example, car manufacturers manufacture limited parts in their factories. The remaining parts may be imported from their group companies or international component manufacturers or may be sourced from local manufacturers. The car manufacturers obtain these parts primarily in CKD form, and the entire assembly of the car takes place at the car manufacturers site. There are also instances where companies like Mercedes, import their cars in SKD condition from their international manufacturing units and a limited assembly takes place in India to make the car ready for sale.
The challenge here is the transportation of these items in a knocked-down condition. A single invoice might require multiple trucks/conveyances to transport the goods from one place to another.
Representations were made by the Industry to the Central Board of Indirect Taxes and Customs (CBIC) for clarifications on the transport of goods in knocked-down conditions. The CBIC published a list of FAQs on their website to clarify the requirements.
Where a supplier plans to ship goods in knocked-down condition, the supplier must:
- Raise the complete single invoice before the shipment of goods.
- Include a delivery challan (giving reference to the invoice number) and certified copy of the invoice along with each
- Raise an E-Way Bill for each conveyance carrying the goods related to the invoice and provide the invoice number while raising the EWB. The EWB has to be generated for every delivery challan.
- Include the original copy of the invoice along with the last consignment dispatched.
In this case, when a supplier wants to generate the EWB on the E-Way Bill Portal, he/she must select the transaction type as ‘Outward Supplies’ and then select the sub-type as ‘SKD/CKD’. The remaining details (Part A and Part B) to raise the e-Way bill have to be updated thereafter.
Note: When the EWB is generated based on the Delivery Challan, the document type to be selected is ‘Delivery Challan’.