Recently the goods and services tax network (GSTN) has cleared that there is no requirement of e-way bills (EWB) for the only supply of services that constitutes the principal component of the transaction. However if in case the transaction is of both goods and services, the waybill is required to be generated with mentioning of both codes of supply.
As for general information, for all the supply of goods having a value of more than INR 50,000, there is an absolute requirement of GST e-way bill (EWB) when transporting the goods from one state to another or even when there is movement from one city to another. This ensures that the tax has been paid on the goods being transported.
In an advisory by GSTN, there is a clear mention of the provision, “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, the e-way bill may be generated.”
Also note that there are mix supply of goods and services for example pandal or shamiana services, catering services, works contract services, printing services etc which also carries goods for the service execution must require EWB along with the HSN code of goods transported and the SAC (Service Accounting Code) of services. The advisory mentioned that “In such cases, the 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.”
The matter was cleared after the trade organizations and associations came in front to raise a query based on the EWB generation wholly on services as a principal supply. The point was that the trade bodies couldn’t find the option to generate the e-way bill (EWB) for the supply of services being the principal component of supply.
