Advisory on Generation of EWB Where the Principal Supply Is Supply of Services

1. Various trade groups have complained that they are unable to generate e-way bills for the transportation of goods where the principal nature of supply is classified as a service since the E-way bill portal does not allow them to generate E-way bills solely by entering SAC (Service Accounting Code-Chapter 99).

2. To address this issue, taxpayers are encouraged to do the following:

a) “Information should be given prior to the movement of goods and e-way bill generation,” according to Rule 138 of the CGST Rules, 2017. Every registered person who causes the transportation of goods worth more than INR 50,000 in consignment value….” As a result, an E-way bill is necessary for the transfer of goods. As a result, the e-way bill is not required to be created in situations where the principal nature of supply is classified as a service with no movement of actual goods.

b) However, in instances when the primary supply of service is accompanied by the transportation of certain products, and EWB can be generated. Such circumstances might emerge when providing services such as

• Printing,
• Work contract,
• Catering,
• Pandal or
• Shamiana services, etc.

In such instances, an e-way bill can be generated by inputting the HSN code of the goods as well as the SAC (Service Accounting Code) of the services.