Taxation Times

Indirect Tax : April - 2025

Advisory on E-way Bill Generation for Goods Under Chapter 71

Subject: Clarification on E-Way Bill Requirement for Goods under Chapter 71

Rule 138(14) of the Central Goods and Services Tax (CGST) Rules, 2017, read with its Annexure Sr. Nos. 4 & 5, states that goods covered under Chapter 71 viz., Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal, Jewellery, goldsmiths’, and silversmiths’ articles, except those classified under HSN 7117 (Imitation Jewellery), are exempt from the mandatory requirement of generating an E-Way Bill.

Pursuant to the introduction of the E-Way Bill (EWB) for goods classified under Chapter 71, excluding HSN 7117 (Imitation Jewellery), in the state of Kerala for intra-state movement, the National Informatics Centre (NIC) has provided an option to generate EWBs for goods covered under Chapter 71 except 7117 under the category “EWB for Gold” on the EWB portal.

Various industry stakeholders have voluntarily been generating EWBs for goods under Chapter 71 due to the availability of this option in the EWB system. In this regard, it is clarified that while the system previously allowed EWB generation for goods under Chapter 71, this facility has now been withdrawn.

Accordingly, taxpayers and transporters engaged in the movement of goods under Chapter 71 (except HSN 7117) are advised that EWB generation is not required. However, it may be noted that for the intrastate movement of such goods within the state of Kerala, the generation of an EWB has been mandated vide Notification No.10/24-State Tax dated 27/12/24 issued by the state of Kerala. An advisory dated 27.01.2025 has already been issued in this regard.

Industry stakeholders are requested to take note of this clarification and ensure compliance with the applicable regulatory provisions.

Subject: Advisory on Introduction of Form ENR-03 for Enrollment of Unregistered Dealers/Persons in e-Way Bill Portal for generating e-way Bill.

Dear Stakeholders,

A new feature has been introduced in the E-Way Bill (EWB) system to facilitate the enrollment of unregistered dealers supplying goods, effective 11.02.2025. Under Notification No. 12/2024 dated 10 July 2024, Form ENR-03 has been introduced for the Enrollment of unregistered dealers.

Unregistered dealers engaged in the movement or transportation of goods can now generate e-Way Bills by enrolling themselves on the EWB portal and obtaining a unique Enrollment ID. This ID will serve as an alternative to the Supplier GSTIN or Recipient GSTIN for generating e-Way Bills.

User Guide for ENR-03 Enrollment

Accessing ENR-03:

a) As per the notification, an Unregistered Person (URP)can enrol using Form ENR-03.

b) The option is available under the “Registration”tab in the main menu of the EWB portal.

Filling Out the ENR-03 Form:

a) Upon selecting the option, the Enrollment screen will be displayed.

b) The applicant must select their Stateand enter their PAN details, which will be verified.

c)The type of Enrollment must be selected, and address details must be provided.

d)A mobile number must be entered, which will be verified via OTP.

Creating Login Credentials:

a) The user must create a username, check its availability, and set a passwordbefore submitting the details.

b) Upon successful submission, a 15-character Enrollment IDwill be generated, and an acknowledgement will be displayed.

c)This Enrollment ID can be used for generating e-Way Bills in place of a GSTIN.

Generating an e-Way Bill:

a) The enrolled URP can log in to the EWB portal using the registered credentials.

b) By selecting the ‘Generate New’option, the Enrollment ID will be auto-populated as the Supplier/Recipient.

c) Other relevant details must be entered before proceeding with e-Way Bill generation.

For further assistance or queries related to this update, taxpayers may contact the GST Helpdesk or refer to the detailed User Guide attached.
https://tutorial.gst.gov.in/downloads/news/user_manual_for_enr_03_final.pdf

This advisory is issued for the information and compliance of all stakeholders.

Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 55th meeting held on 21st December 2024, at Jaisalmer - reg.

Based on the recommendations of the GST Council in its 55th meeting held on 21st December 2024, at Jaisalmer, in the exercise of the powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017, the Board hereby clarifies the following issues through this circular for the purpose of uniformity in their implementation:

Clarification regarding classification and GST rate on pepper of genus Piper
1.1 References were received seeking clarification on the classification and applicable GST rate on the supply of pepper of the genus Piper and whether the supply of dried pepper by an agriculturist is exempt from GST.
1.2 Based on the recommendations of the GST Council in its 55th meeting, it is hereby clarified that pepper of genus Piper, whether green (fresh), white or black, is covered under HS 0904 and attracts 5% GST vides S. No. 38 of Schedule I of notification No. 1/2017-Central Tax (Rate) dated the 28th June, 2017.
1.3 As regards the applicability of GST on the supply of dried pepper by an agriculturist from their plantations, Section 23 (1) (b) of the CGST Act provides that an agriculturist, as defined in Section 2(7) of the CGST Act, to the extent of supply of produce out of cultivation of land is not liable to take registration.
1.4 As per the recommendation of the GST Council, it is hereby clarified that an agriculturist supplying dried pepper is not liable to be registered under Section 23(1) of the CGST Act and is exempt from GST.
Clarification regarding raisins supplied by an agriculturist
2.1 Reference was received seeking clarification on the applicable rate on the supply of raisins by agriculturists.
2.2 As per the recommendation of the GST Council, it is hereby clarified that an agriculturist supplying raisins is not liable to be registered under Section 23(1) of the CGST Act and is exempt from GST.
Clarification on GST rate on ready-to-eat popcorn
3.1 Representations were received seeking clarification regarding appropriate classification and applicable GST rate on ready-to-eat popcorn.
3.2 On the recommendation of the Council, it is hereby clarified that ready-to-eat popcorn which is mixed with salt and spices are classifiable under HS 2106 90 99. It is also hereby clarified that such ready-to-eat popcorn mixed with salt and spices classifiable under HS 2106 90 99 attracts 5% GST if other than pre-packaged and labelled vide S. No. 101A of Schedule I of notification No. 1/2017-Central Tax (Rate) dated the 28th June 2017 and 12% GST if sold as packaged and labelled vide S. No. 46 of Schedule II of notification No. 1/2017-Central Tax (Rate) dated the 28th June, 2017, as it has the essential character of namkeens. However, when the popcorn is mixed with sugar thereby changing its character to sugar confectionary (e.g. caramel popcorn), it would be classifiable under HS 1704 90 90 attracting 18% GST vide S. No. 12 of Schedule III of notification No. 1/2017-Central Tax (Rate) dated the 28th of June 2017
3.3 Further, in view of the prevailing genuine doubts regarding the applicability of the GST rate on ready-to-eat popcorn mixed with salt and spices, as recommended by the Council the issue for a past period up to 14.2.2025 is hereby regularized on ‘as is where is’ basis.
Fly ash based Autoclaved Aerated Concrete Blocks
4.1 References were received regarding the classification and applicable GST rate on autoclaved aerated concrete (AAC) blocks containing at least 50% fly ash content as raw material.
4.2 Fly ash bricks, fly ash aggregates and fly ash blocks classifiable under HS 6815 attract 12% GST vide S. No. 176B of Schedule II of notification No.1/2017-Central Tax (Rate) dated 28.06.2017. Articles of cement, of concrete or artificial stone, whether or not reinforced classifiable under HS 6810 attract 18% GST vide Sr. No. 181 of Schedule III of notification No. 1/2017-Central Tax (Rate) dated 28.06.2017.
4.3 As per the recommendation of the GST Council, it is hereby clarified that autoclaved aerated concrete (AAC) blocks containing more than 50% fly ash content will fall under HS 6815 and attract 12% GST.
Effective date of amended entry regarding ground clearance
5.1 Representations were received that there are different views in some jurisdictions regarding the effective date of amended entry 52B in notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017.
5.2 Before the 50th GST Council meeting, vide entry at Sr. No. 52B in the notification No. 01/2017- Compensation Cess (Rate) dated 28.06.2017, motor vehicles of engine capacity exceeding 1500 cc, popularly known as SUVs, including utility vehicles attracted 22% Compensation Cess.
5.3 Following the 50th GST Council meeting, vide notification No. 03/2023- Compensation Cess (Rate) dated 26.07.2023, entry 52B was substituted to provide that the cess will be applicable to all motor vehicles known as utility vehicles by whatever name called, with engine capacity exceeding 1500cc, length exceeding 4000 mm and ground clearance of 170 mm and above. Further, a new explanation was added that ground clearance means ground clearance in unladen conditions.
5.4 As per the recommendation of the GST Council, it is hereby clarified that the amendment carried out vide notification No. 03/2023- Compensation Cess (Rate) dated 26.07.2023 will apply on or after 26.7.2023.

NOTIFICATION No. 08/2025 – CENTRAL TAX New Delhi, the 23rd of January 2025

In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby waives the amount of late fee referred to in section 47 of the said Act in respect of the return to be furnished under section 44 of the said Act, for the financial years 2017-18 or 2018-19 or 2019-20 or 2020-21 or 2021-22 or 2022-23, which is more than the late fee payable under section 47 of the said Act up to the date of furnishing of FORM GSTR-9 for the said financial year, for the class of registered persons, who were required to furnish reconciliation statement in FORM GSTR-9C along with the annual return in FORM GSTR-9 for the said financial year but failed to furnish the same along with the said return in FORM GSTR-9, and furnish the said statement in FORM GSTR-9C, subsequently on or before the 31st March, 2025:

Provided that no refund of the late fee already paid in respect of delayed furnishing of FORM GSTR-9C for the said financial years shall be available.

Case Laws

IGST refund cannot be denied despite availing duty drawback

The Hon’ble Madras High Court of Madurai Bench in the case of M/s Modern India Products v. The Assistant Commissioner of Customs House IGST Section & Ors. [Writ Appeal (MD) No. 1559 of 2021 dated February 21, 2025], allowed a refund claim by the assessee of the Integrated Goods and Services Tax (“the IGST”) refund for exports that would qualify as zero-rated supply. While Circular No. 37/2018-Customs dated October 09, 2018 (“the Circular”) relied upon by Standing Counsel to state that if duty drawback is claimed, refund of IGST amount cannot be sought. The Court relied on the Hon’ble Gujarat High Court case wherein it was held that the Circular cannot prevail over Rule 96 of the CGST Rules.

Facts:

M/s Modern India Products (“the Petitioner”) is an exporter of goods known as “absorbent gauze roll”. The export was made on September 26, 2017. The goods were valued at Rs.12,72,827/- and the Petitioner paid a sum of Rs.2,54,449/- towards IGST. The Petitioner contends that the exports would come under zero-rated supply, and they are entitled to a refund of the IGST amount in terms of Sections 16 and 54 of the IGST Act read with Rule 96 of CGST Rules. When the Petitioner applied for a refund, it was not acted upon. Hence the Petitioner filed W.P. (MD) No.9796 of 2020. The writ petition was allowed by the learned single bench on April 17, 2021. Hence, aggrieved by the circumstances, the present intra-court appeal has been filed by the Petitioner.

Issue:

Whether refund of IGST can be sought if a duty drawback is claimed?

Held:

The Hon’ble Madras High Court of Madurai Bench in Writ Application (MD) No. 1559 of 2021 held as under: • Noted that, the Circular states that if duty drawback is claimed, refund of IGST amount cannot be sought. Relied on, M/s. Amit Cotton Industries v. Principal Commissioner of Customs [R/Special Civil Application No. 20126 of 2018 dated June 27, 2018] wherein the Division Bench of the Hon’ble High Court held that the Circular cannot prevail over Rule 96 of the CGST Rules. The Hon’ble Division Bench observed that the circular will not save the situation for the Department. This decision was followed by the Madras High Court in the decision reported in M/s. Precot Meridian Limited v. The Commissioner of Customs, The Assistant Commissioner of Customs [W.P. (MD) No. 20504 of 2019 dated November 19, 2019]. • Held that, several other High Courts have taken the very same view. Since the single-judge bench granted relief to the Petitioner only by following the existing legal position, interference with the said order is not warranted.