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What are Semi Knocked Down and Completely Knocked Down Goods (SKD/CKD)?

An eway bill (EWB) must be generated for every good that has to be transported from one state to another and is worth more than ₹50,000. But, sometimes, the object is too big to be carried in one vehicle. To overcome that obstacle, these goods are dismantled for logistical convenience purposes. Once the dismantling happens, they are called Semi Knocked Down (SKD) goods and Completely Knocked Down (CKD) goods. These goods are then transported to the intended recipient residing in a different state though multiple carriers. While generating an Eway bill, a person will have to select one of the two transaction types, either ‘Outward supplies’ or ‘Inward supplies’. While selecting ‘Outward supplies’, if SKD or CKD goods are being transported, he/she must select ‘SKD/CKD’ as a transaction subtype.

Circumstances and Industry Under Which the CKD/SKD Transaction Type is Used

This particular transaction type is more popular in industries that produce or trade in heavy machines or furniture, such as the automotive, infrastructure or the furniture industry. Oftentimes, such goods are dismantled at the place of origin, packed in compact boxes and taken across state borders through several vehicles.

Eway Bill for Transportation of Goods in SKD/CKD Conditions

To generate an Eway bill for goods that must be transported in SKD/CKD form, the supplier must follow the below-mentioned procedure for generating an Eway bill for SKD/CKD goods:

  • Raise the complete single invoice prior to the initiation of the shipment of goods.

  • Include a delivery challan that should include the invoice number, along with a certified copy of the invoice along with each.

  • Raise an E-Way Bill for each conveyance that is carrying the goods related to the invoice and provide the invoice number while making the Eway bill. An EWB has to be generated for each and every delivery challan.

  • Include the original copy of the invoice.

For example, let us say that a single invoice has been generated for Toothbrush Tufter Machine A, which has been unassembled so that it can be transported via 3 trucks. In such cases, 3 delivery challans and an equal number of Eway bills will be generated, one for each vehicle. These eway bills will be given to the driver of the vehicle whose details are mentioned on the eway bill. Just like in the case of eway bills for goods that are shipped in one piece, this document will need to be furnished when required. Note that the goods must satisfy the laid-down eway bill norms.

Procedure for Generation of Eway Bill for CKD & SKD Goods

To generate an Eway Bill for Completely Knocked Down (CKD) or Semi Knocked Down (SKD) goods, the supplier must follow the below-mentioned steps

  • Step 1: The supplier must login to the e-way bill portal with their credentials.

  • Step 2: Then, the supplier must click on Eway bil and then ‘Generate new’.

  • Step 3: Post that, the supplier must select the transaction type as “Outward” and “SKD/CKD” as the transaction subtype.

  • Step 4: Finally, the supplier must update the delivery challan details and fill up Part A and B in order to generate the Eway Bill against each and every such delivery challan.