In the Central Goods and Services Tax (CGST) Rules, 2017, Part – A (Rules), Chapter XVI is dedicated to the E-way Rules, providing comprehensive details regarding E-waybill exemptions. Within this framework, specific industries, such as Agriculture, Livestock and Meat, as well as Dairy, among others, benefit from exemptions under specified conditions.
The rules, as outlined in Chapter XVI, elucidate the criteria for E-waybill exemptions, primarily found in Annexure [(See rule 138(14)]. This annexure furnishes a list of goods for which exemptions are granted, along with their corresponding Chapter, Heading, Subheading, or Tariff item, and a succinct description of the goods.
Read on to find out more about industry-based exemptions from the need of an e-waybill.
Also Read: Exemptions from E-waybill: Understanding the Criteria and Categories
E-waybill Exemptions for Agricultural and Dairy Products, and Others
Exemptions within specific industries, such as Agriculture, Dairy, and Meat, hinge on the nature and state of the products. In the Agricultural sector, products like fresh turmeric lose their exemption status once processed, while barley or rice remains exempt unless packaged in a unit container bearing a registered brand name. In the Dairy and Animal Produce industry, milk qualifies for exemption unless concentrated, containing added sugar or sweetening matter, with the exception of Ultra High Temperature (UHT) milk. Natural honey retains its exemption, except when packaged in a unit container with a registered brand name. For the Meat industry, pig fat, devoid of lean meat, is exempt unless rendered, salted, in brine, dried, or smoked, and not packaged in unit containers. Similarly, the meat of various animals is exempt unless frozen and packaged in unit containers. However, this exemption framework may not universally apply, as seen in industries like Fisheries. In this sector, products like fish seeds enjoy exemption regardless of processing, curing, or being in a frozen state, excluding goods falling under Chapter 3 and attracting a 2.5% tariff. The detailed exemptions within each industry reenforce the importance of understanding specific product conditions and processing states to ensure accurate compliance with the prevailing regulatory framework. Below is a table explaining industry-wise exemptions.| Industry | Chapter or Heading or Sub-heading or Tariff item | Description of Goods |
| Livestock and Meat | 0101 | Live asses, mules, and hinnies |
| 0102 | Live bovine animals | |
| 0103 | Live swine | |
| 0104 | Live sheep and goats | |
| 0105 | Live poultry | |
| 0106 | Other live animals such as mammals, birds, insects | |
| 0201, 0202 | Meat of bovine animals (fresh, chilled, frozen) | |
| 0203 | Meat of swine (fresh, chilled, frozen) – 0203 | |
| 0204 | Meat of sheep or goats (fresh, chilled, frozen) | |
| 0204 | Meat of horses, asses, mules or hinnies (fresh, chilled, frozen) – 0205 | |
| 0206 – 0208, 0210 | Edible offal of various animals | |
| 0209 | Pig fat, free of lean meat, and poultry fat | |
| Fisheries | 0511 | Fish seeds, prawn/shrimp seeds – 0511 |
| 0301 | Live fish – 0301 | |
| 0302 | Fish, fresh or chilled – 0302 | |
| 0304 | Fish fillets and other fish meat, fresh or chilled – 0304 | |
| 0306 – 0308 | Crustaceans, molluscs, and aquatic invertebrates | |
| Dairy and Animal Produce | 0401 | Fresh milk and pasteurized milk |
| 0403 | Curd, Lassi, Buttermilk | |
| 0406 | Chena or paneer | |
| 0407 | Birds’ eggs in shell | |
| 0409 | Natural honey | |
| 0506 | Bones and horn-cores | |
| 0507 | Hoof meal, horn meal, hooves, claws, nails and beaks, antlers, etc. | |
| Agricultural and Horticultural Produce | 0701 – 0709, 0714, 0910 11 10, 0910 30 10 | Various fresh or chilled alliaceous vegetables, edible brassicas, edible roots, legumes, leafy vegetables, other groups of vegetables, etc. |
| 6 | Live trees and other plants and parts | |
| 0712, 0713 | Dried vegetables | |
| 0801 | Coconuts, brazil nuts | |
| 0802 | Various kinds of fresh nuts such as walnuts, almonds, hazelnuts, etc. | |
| 0803 – 0810 | Various fruits, including different plantains, citrus fruit, berries, drupes, melons, pome fruits, and more. | |
| 0814 | Fruit peels | |
| 9 | All goods of seed quality | |
| 0901 | Unroasted coffee beans | |
| 0902 | Unprocessed green leaves of tea | |
| 0909 | Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper berries | |
| 1001 – 1008 | Various cereals and grains like wheat, rye, barley, maize, etc. | |
| 1101 – 1106 | Various flours, groats, and hulled grains | |
| 12 | All goods of seed quality | |
| 1201 | Soyabean | |
| 1202 | Groundnut | |
| 1204 – 1207, 1209 | Various seeds, such as linseeds, colza seeds, sunflower seeds, oil seeds, seeds for sowing, etc. | |
| 1210 | Hop cones | |
| 1211 | Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose | |
| 1212 | Locust beans, seaweeds and other algae, sugar beet and sugar cane | |
| 1213, 1214 | Pellets of produce such as husks and forage products | |
| 1301 | Lac and Shellac | |
| 1404 90 40 | Betel leaves | |
| 1701 or 1702 | Jaggery | |
| 1904 | Rice in forms like puffed rice, muri, murki, etc. | |
| 1905 | Pappad and bread | |
| 2201 | Water and non-alcohloic toddy | |
| 2202 90 90 | Tender coconut water | |
| 2302, 2304, 2305, 2306 | Feed for aquatic animals, livestock, and poultry | |
| 2308, 2309 | Pulses, concentrates andadditives, wheat bran and de-oiled cake | |
| Chemicals, Minerals, Precious Natural Items | 2835 | Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 2002 |
| 2501 | Salt | |
| Any Chapter | Fuels, such as petroleum, kerosene, etc. | |
| Chapter 71 | Natural or cultured pearls | |
| Chapter 71 | Jewellery, goldsmiths’ and silversmiths’ wares and other articles | |
| Textiles and Handicrafts | 5001 – 5003 | Silkworm laying, cocoon and raw silk |
| 5101 – 5101 | Wool and animal hair in various forms, including waste | |
| 52, 5303, 5305 | Various fibers such as jute, khadi yarn, etc. | |
| 63 | Indian National Flag | |
| 6912 00 40 | Earthen pot and clay lamps | |
| 7018 | Glass bangles, except those made from precious metals | |
| 92 | Indigenous handmade musical instruments | |
| 9603 | Muddhas made of sarkanda and phoolbaharijhadoo | |
| 3926 | Plastic bangles | |
| 0508, 9601 | Corals, worked or unworked | |
| Human Bodily Components | 3002 | Human Blood and its components |
| 6703 | Human hair, dressed, thinned, bleached or otherwise worked | |
| 0501 | Human hair, unworked, whether or not washed or scoured, waste of human hair | |
| Miscellaneous | 4802 / 4907, 4817 / 4907, 4901 – 4905 | Various educational items, postal items, and stationary for different purposes, such as children’s maps, judicial stamp papers, newspapers, slate pencils, books, etc. |
| Any chapter, 48 / 4907 | Currency and Rupee notes | |
| 9803 | Passenger Baggage | |
| 3304 | Kajal | |
| 8201, 8445, 8446 | Machinery and agricultural implements | |
| 9021 | Hearing aids | |
| 8802 60 00 | Spacecraft (including satellites) and suborbital and spacecraft launch vehicles | |
| 4014 | Condoms and contraceptives | |
| 3101 | All goods and organic manure | |
| Any chapter | Puja samagri | |
| Any chapter | Used personal and household effects |
Understanding the Rationale Behind Exemptions for Specific Industries
These exemptions aim to promote local trade by reducing administrative burdens, particularly for industries operating within state borders. Tailoring exemptions to the scale and nature of operations in sectors like Agriculture and Dairy acknowledges the practical challenges of enforcing stringent regulations on numerous small-scale transactions conducted over short distances. Essential supply chains, especially those involving critical goods, benefit from exemptions, ensuring an uninterrupted flow without unnecessary regulatory hurdles. Exemptions are also designed to align with local economic and geographic conditions, recognizing the diversity of industries across regions. Reducing administrative burdens help authorities enhance operational efficiency, allowing businesses to focus on core activities. An active regulatory approach ensures that exemptions remain responsive to evolving industry dynamics, reflecting emerging needs and challenges over time. These exemptions aim to strike a balance between regulatory oversight and operational flexibility, fostering economic growth and facilitating smooth business operations.Impact of E-waybill Exemptions on Supply Chain Operations in these Industries
E-waybill exemptions exert a significant influence on the supply chain operations of diverse industries, manifesting tangible benefits for efficiency and functionality. Industries such as Livestock and Meat, Fisheries, Agricultural Produce, Textiles, and Handicrafts derive substantial advantages from these exemptions. Let’s understand with a few examples.- In Livestock and Meat, the absence of E-waybill requirements simplifies the transport of perishable goods, ensuring timely deliveries to local markets.
- Fisheries experience improved logistics, enabling the swift movement of fresh catches to meet consumer demand without procedural hindrances.
- For Agricultural Produce, the streamlined documentation process reduces administrative burdens, fostering a more agile local trade in fruits, vegetables, and grains.
- In Textiles and Handicrafts, the exemption facilitates the unimpeded transportation of finished goods within state borders, optimizing the supply chain.
Ensuring Compliance with E-waybill Requirements for Non-exempt Transactions
Under the Goods and Services Tax (GST) regime, adherence to e-waybill requirements is imperative to validate the movement of goods. The CGST Act Section 68 and Rule 138 of the CGST Rules, 2017, mandate the generation of an e-waybill for the movement of goods exceeding ₹50,000 by registered individuals under GST. Additionally, specific circumstances necessitate e-waybill generation, even for consignments below ₹50,000, such as interstate transfers from a principal to a job worker or the interstate transfer of handicraft goods initiated by an unregistered individual to a registered one. To ensure compliance with this regulation, sellers or consignors must grasp the following key aspects:- E-waybill Generation: Non-exempted goods necessitate e-waybill registration and generation. Consignors or sellers must upload consignment details on the common portal for e-waybill, linked with the GST portal, before transporting goods. The e-waybill typically includes crucial information such as the consignor/seller’s name, consignee/recipient’s name, origin of the consignment, delivery address, transport route, and estimated time of delivery. It comprises Part A and Part B, filled by the taxpayer and the transporter, respectively.
- Documentation for Transporters: Transporters are required to possess specific documents according to GST e-waybill rules. These include an invoice, bill of supply, or delivery challan, along with the physical copy or number of the e-waybill. During interstate or intrastate movement, officers have the authority to intercept vehicles to check e-waybills. Physical verification, subject to commissioner approval in suspected cases of tax evasion, may occur. Once verified in a state, a vehicle is not rechecked unless there are concerns about tax evasion.
Seeking Guidance on E-waybill Exemptions and Compliance for Specific Industries
Seeking guidance on e-waybill exemptions and compliance is imperative for industries such as Agriculture, Dairy, Livestock, Fisheries, Textiles, and Handicrafts. With e-waybills integral to the GST regime, industry-specific nuances necessitate expert advice to decipher exemption criteria and compliance procedures. Professionals can offer insights into tailored regulatory requirements, ensuring seamless movement of goods and optimal supply chain efficiency for businesses in these diverse sectors.Endnotes
Staying updated with industry-specific e-waybill regulations is crucial for businesses to ensure compliance with evolving standards, fostering operational efficiency and avoiding penalties. Certain industries, deemed special or essential, benefit from exemptions to streamline operations, enabling the smooth movement of vital goods and supporting economic activities with reduced bureaucratic constraints. Lastly, the contents of this article should not be interpreted as a legal opinion or representation of the author’s views. The information provided is intended solely for informational and educational purposes. Although care has been taken in preparing this article, there may be inadvertent mistakes and omissions. The author disclaims any liability for losses or damages of any nature resulting from inaccurate or incomplete information in this document or any actions taken based on it. It is recommended to seek expert or professional consultation. Also Listen: How to create E-way Bill With CaptainBizFAQs
Here are some frequently asked questions.-
What is an e-waybill?
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Where can an e-waybill be generated?
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Is e-waybill required for all goods?
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Is an e-waybill required for goods transported within a 10-kilometer radius?
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Which transactions need e-waybills?
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Do states have their own exemptions for E-waybills?
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Are there any examples of state-specific thresholds?
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What are essential industries that are exempt from e-waybills in the context of GST?
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Are live animals exempted goods?
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What happens if the e-waybill validity expires?
Check GST e-way bill exemptions for sectors like agriculture, dairy, textiles, and perishable goods.
