E-way bill for SKD/CKD and multi-vehicle consignments

The e-way bill provisions are one of the most critical aspects of the goods and services tax. By digitally monitoring the transportation of goods, they ensure tax deduction at the source. However, filing a single e-way bill is not enough if the transport involves a semi knocked down (SKD), Completely Knocked Down (CKD) consignment, and multiple vehicles.

SKD and CKD refer to the practice of breaking down industrial machines and vehicles to easy trasportion. As such, several industries, including automobile and engineering, find it more practical to transport goods in knocked-down condition. This article outlines the e-Way SKD, CKD, and multiple vehicle transport consignment.

What is an e-way Bill?

An e-way bill is a document to be generated for the transportation of goods of value equal to or more than the threshold limit. The e-way bill shall contain the details of the supplier and receiver of goods, transportation description of goods, vehicle number, invoice and other applicable details. A tax authority may check an e-way bill to ensure that tax is paid on the transported goods. Thus, either the supplier, receiver, or the transporter can generate it.

What are SKD and CKD?

Before getting into the details of the new e-way bill provisions to know the meaning of SKD and CKD. In short, SKD is called semi-knocked down, and CKD is called completely knocked down. In simple terms, SKD can be explained as goods that are partially assembled, and CKD is referred to as completely dismantled goods.

SKD products usually have some major parts assembled while others are detached. On the other hand, CKD products do not have any parts assembled. Industrial machines, elevators, transformers, wind mills, generators, heavy vehicles, and other machinery are usually transported in SKD and CKD condition.

Documents to be carried in the first vehicle

The first vehicle in SKD and CKD transportation should ideally carry the original invoice issued for the supply of goods. It should ideally carry original invoices issued for the supply of goods. It should also carry the transport documents and the relevant e-way bill.

The second vehicle and others should carry
A certified copy of the invoice
Delivery challan
e-way bill

The transporter must carry transport documents to prove the connection between the various invoices and delivery challans.

What is a multi-vehicle e-way bill?

A multi-vehicle e-way bill allows businesses to update the details of different vehicles on the e-way bill portal for goods transported using multiple vehicles. Using this facility, businesses do not have to generate separate e-way bills for different vehicles carrying goods.

Instead, the bill is updated separately for every vehicle carrying goods. This facility is mainly useful for transporting large machinery and equipment. This way, businesses can comply with the e-way bill rules without much hassle.

When can i use the facility to move goods in multiple vehicles?

The multi-vehicle e-way bill facility can be used when transporting goods that have been invoiced once but have to be transported in multiple vehicles. When transporting goods in multiple vehicles, all the goods must be on the same invoice and destined for the same address. The transporter must also ensure that the relevant details of the vehicle are updated on the portal before the time of transportation of the vehicle concerned.

Each vehicle must carry relevant documents and information about the goods it is carrying. The e-way bill portal must also be updated with all the necessary details. Before every vehicle goes for transportation, the documents and information carried by it must be verified to avoid problems.

Benefits of multiple e-way bills

The multiple vehicle e-way bill facility is highly beneficial to businesses that deal with goods and equipment that need to be transported in multiple vehicles. It enables transporters to update vehicle details with relative ease while helping businesses to easily monitor and track their cargo.

It also helps the tax authorities to monitor large commercial consignments without getting into the details of every vehicle involved. Since the details of the different vehicles are updated on the portal, it is relatively easy for the tax authority to check them out in case of any irregularities.

In some cases, tax authorities may allow businesses to clear goods against payment of tax and penalties. This could be very costly to businesses while disrupting their operations. It is therefore important for businesses to comply with all the requirements for an e-way bill to avoid these penalties and disruption to their operations.

Best practices for businesses dealing with SKD, CKD and multiple vehicle transportation

Businesses dealing with SKD, CKD and multi-vehicle transportation must adhere to best practices when transporting goods. The following are some of the best practices for businesses dealing with SKD and CKD transportation:

Before transporting goods, businesses must put together a compliance plan that will apply to all SKD and CKD shipments. Every SKD and CKD invoice must be compared to identify all possible documents for the goods they intend to transport.

Before transportation, businesses should verify all the invoice details, including delivery challans, transport details, vehicle numbers and e-way bills to identify and rectify any inconsistencies. They should also make sure that all the relevant documents for the goods they intend to transport.

Before transportation, businesses should verify all the invoice details, including delivery challans, transport details, vehicle numbers, and e-way bills, to identify and rectify any inconsistencies. They should also make sure that all the relevant documents are complete before transportation begins. Businesses should perform routine reconciliation of invoices and e-way bills to ensure compliance.

‍Suggested Read: Proper Vehicle number format for e-way bill

Conclusion

The e-way bill provisions and guidelines for SKD, CKD and multiple vehicle transportation recognise the unique situation of industries and businesses that deal with transportation and use multiple vehicles for transporting goods.

Under the provisions, businesses must ensure that they carry all the required documents to ensure smooth transportation of goods. They must also make sure that correct details are updated on the e-way bill portal. In addition to minimising errors and promoting compliance with the law, adhering to the guidelines also expedites transportation processes and satisfies customers.

FAQs

Is a separate tax invoice required for each SKD or CKD consignment?

No, a separate invoice is not required for SKD or CKD. A complete invoice is issued for the supply of goods, while subsequent shipments carry a certified copy of the invoice along with delivery challans.

Can heavy machinery be transported in multiple vehicles under GST?

Yes, heavy machinery can be transported in multiple vehicles under GST as long as the provisions of the GST law are complied with.

Who is responsible for updating vehicle details?

The transporter is responsible for updating the vehicle details.

Is a delivery challan required for subsequent SKD or CKD consignments?

Yes, a delivery challan is required for all subsequent SKD or CKD consignments.

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