In today’s world, the mode of transportation and manufacturing process have become advanced. A manufacturer of a large product, say crane, is also bound by the laws of GST if the supplier is making an inter-state transaction. However, for the purpose of transportation there will be more than one vehicle that will be required. Hence, the provisions for CKD or SKD will be applied.
What is CKD or SKD?
The term CKD stands for Complete Knocked Down and the term SKD stands for Semi Knocked Down. While transporting massive goods from one state to another, the supplier needs to break down the goods into various parts which would be carried by numerous vehicles. Upon arriving at the customer’s / buyer’s place, the goods will be assembled once again. Cases of CKD or SKD is mainly observed in industries like cars, chain production machine, etc.
e-Way bill compliance for CKD or SKD
Irrespective of how huge the goods are, e-Way bill is a must if there is inter-state or intra state transport involved. A supplier needs to comply with the following:
1 – Single invoice for the goods. No matter in how many parts the goods are being transported, if there is a single product then it must have a single invoice.
2 – A Delivery Challan is required for every vehicle that is involved in transporting CKD or SKD goods from one state to another.
3 – An e-Way bill needs to be generated on the basis of Delivery Challan. For every vehicle, there will be an e-Way bill.
4 – Every Delivery Challan should have a certified copy of the invoice as mentioned in Point 1.
5 – The original invoice would be present in the last vehicle.
How to generate e-Way bill for CKD or SKD
In order to generate an e-Way, a registered user needs to follow the given steps:
Step 1 – Login to the official website, that is, https://ewaybill.nic.in/
Step 2 – Go to e-Way bill option and select “Generate New”
Step 3 – In the transaction area, select the type as “Outward” and then click on “SKD/CKD” on the right.
Step 4 – Complete the form by filling up Part A and Part B.
Step 5 – Generate e-Way bill through delivery challan.
Thus, we find that irrespective of whether the size of goods is big or small, e-Way bill is mandatory for inter-state transport. Have questions? Ask us through the comments section.