E-Way Bill for Knocked-Down (CKD/SKD) Goods: Rules

For goods moved in a Completely Knocked-Down (CKD) or Semi-Knocked-Down (SKD) condition across multiple vehicles, a separate e-way bill and delivery challan are generated for each vehicle, while the complete invoice accompanies the consignment as prescribed under the e-way bill rules.

When generating an e-way bill, individuals must specify the transaction type as either “outward supplies” or “inward supplies.” For “outward supplies,” a sub-type must also be chosen from options such as “Supply,” “Exports,” “Job Work,” “SKD/CKD,” “Recipient not known,” “for own use,” “Exhibition or Fair,” “Line Sales,” or “Others.”

Recent E-Way Bill Updates

Recent updates impacting e-way bill generation include the temporary suspension of e-way bill blocking for non-filers of GSTR-1 or GSTR-3B between May and August 2021, with blocking resuming from August 15, 2021. Additionally, the e-way bill portal clarified that suspended GSTINs cannot generate e-way bills but can receive them. The transport mode “Ship” was updated to “Ship/Road cum Ship” to accommodate multimodal transport, and a notification specified that e-way bill blocking applies only to the defaulting supplier’s GSTIN.

Semi-Knocked Down (SKD) and Completely Knocked Down (CKD) Goods

Sometimes, goods intended for transportation are too large to fit into a single vehicle or are more efficiently moved in separate components. Such items are known as Semi-Knocked Down (SKD) or Completely Knocked Down (CKD) goods. These goods are typically supplied under a single invoice but necessitate multiple transport vehicles. For instance, if a crane is shipped from Gurgaon to Kerala under a single invoice, it might be partially disassembled and transported across three trucks for easier logistics.

Industries and Scenarios Using SKD/CKD Transactions

This “screwdriver technology,” where goods are transported in SKD/CKD configurations, is common in sectors such as motor vehicle manufacturing and large machinery production. In these cases, components are shipped in multiple vehicles to showrooms or assembly points, where they are then put together before sale. A familiar example is purchasing furniture; often, it arrives in a compact, disassembled (CKD) package with instructions and tools for home assembly.

E-Way Bill Protocols for SKD/CKD Movements

Suppliers must adhere to specific protocols for transporting goods in SKD/CKD conditions:

1. Issue a single invoice for the total goods supplied, even if transported by different vehicles.
2. Generate a separate delivery challan for each vehicle, referencing the same single invoice number.
3. Each vehicle must carry its respective delivery challan and a certified copy of the main invoice.
4. An e-way bill must be generated for every delivery challan issued for individual vehicles.
5. The original invoice should accompany the final consignment.

For instance, if a machine “A” is shipped unassembled across four vehicles under a single invoice, four distinct delivery challans and four corresponding e-way bills, each linked to a specific vehicle, are required.

Generating E-Way Bills for SKD/CKD Shipments

To generate an e-way bill for SKD/CKD shipments:

1. Log in to the official e-way bill portal.
2. Navigate to the “e-way bill” section and select “generate new.”
3. Choose “Outward” as the Transaction Type and “SKD/CKD” as the Subtype.
4. Proceed to enter the Delivery Challan details and complete both Part A and Part B to successfully generate an e-way bill for each specific delivery challan.

Related Reads

• Interstate vs Intrastate E-Way Bill Thresholds
• GST E-Way Bill in Telangana
• E-Way Bill Rules in Gujarat

FAQs: E-Way Bill for Knocked-Down Goods

• What are CKD and SKD goods?
  Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) goods are supplied in parts or a semi-assembled state, often transported across multiple vehicles.
• How do I generate an e-way bill for knocked-down goods?
  While generating the e-way bill for an outward supply, select the sub-type ‘SKD/CKD’.
• What documents are required?
  Issue the complete tax invoice before dispatching the first consignment, send a delivery challan (with a copy of the invoice) with each subsequent consignment, and send the original invoice with the last consignment.
• Does each consignment need its own e-way bill?
  Yes – every vehicle/consignment must carry its own e-way bill along with the delivery challan.
• Why is there a special rule for knocked-down goods?
  Because the goods are split across vehicles, this process links each consignment back to a single tax invoice for the complete goods.