E-way Bill requirements for the transport of Goods in Knocked down conditions( CKD or SKD)

When generating an e-way bill, the transaction type must be either "outward supplies" or "inward supplies". If the transaction is for "outward supplies," a sub-type must be selected amongst the several choices such as "Supply, Exports, Job Work, SKD/CKD, Recipient not known, for own use, Exhibition or Fair, Line Sales, or Others."

Let's explore what CKD/SKD means in more detail:

Semi Knocked Down/Completely Knocked down( SKD/CKD)

In some circumstances, the cargo that needs to be transported is huge and using a single transport vehicle to carry it would be nearly unfeasible. Additionally, there are times when it is more practical logistically to move the goods in parts rather than all at once.  These products are known as completely knocked down (CKD) or semi-knocked down (SKD) commodities. 

In these situations, multiple vehicles are employed to convey such vehicles even though the products are supplied under a single invoice.

An example would be the crane shipment from Chandigarh to Kerala on a single invoice. The crane is shipped in three trucks after being partially disassembled for logistical reasons.

Circumstances and industries where CKS/SKD transactions are prevalent

Many industries, including the production of large machinery and motor vehicles, use the practice of shipping goods in SKD/CKD form. Also known as "screwdriver technology," where the unassembled parts are delivered to the showroom using a variety of transport vehicles before being assembled and sold there. 

We frequently wonder how we would transport the furniture from the furniture store to our home and carry it to the fifth floor after purchasing it at the store. However, we are taken aback by the small package the store owner hands us, which contains the complete set of furniture in CKD shape, a manual, and a tonne of screwdrivers. We are then supposed to assemble the product with the help of a handbook.

E-way bill requirement for SKD/CKD

The supplier must adhere to the following procedure for moving goods in SKD or CKD condition.

1. Create a single invoice for the supply of the goods, even if they are transported using various vehicles.

2. Raise a delivery challan referencing the invoice number for each vehicle (same for all the delivery challans).

3. Each vehicle shall be equipped with a delivery challan and a certified copy of the invoice.

4. Every delivery challan created for a different vehicle must generate an e-way bill.

5. The original invoice must be delivered with the final shipment.

Example: Machine "A" with a single invoice, shipped in pieces by four vehicles. Four delivery challans and e-way bills must be generated for each consignment with the appropriate vehicle number.

Procedure for generation of e-way Bill

Step 1: Access the e-way bill portal.

Step 2: Click on “e-way bill”, and from the drop-down menu, select "Generate New"

Step 3: Choose the "Outward" transaction type and the "SKD/CKD" subtype.

To generate the e-way bills against each delivery challan, update the Delivery Challan Details and finish Parts A and B.

You can also try Busy Accounting Software’s auto-generation of e-way bill feature to generate e-way bills easily and conveniently.