Generate, Update, And Cancel E-Way Bills In Minutes

E-way bills are electronic documents that businesses have to fill when moving goods that are valued at more than Rs 50000 at any place in India. They act as authority to transport goods, which is needed per the GST Act for transporting any goods. They elicit information on the consignment and may include information such as the consignor’s name, the consignee’s estimate of the consignment’s value, and the means of transport. They help in tracking the flow of products and the use of GST laws.

They are filed online through the GST network or any third party registered by the GST and tax administration. They are also subject to expiration, so their term may vary depending upon the distance and type of transportation. The e-way bill has to be generated, followed by the transportation of the goods, which cannot be transported independently of the e-way bill.

Speaking of the changes, the implementation of e-way bills has affected the transportation of goods throughout the country. It has helped to streamline it and make it less open for interpretation and manipulation, as well as reducing the incidence of tax fraud and all that. E-way bills also reduced multiple permits for inter-state transportation, which was a cumbersome process for businesses.

Before proceeding further, it is crucial to mention that e-way billing and e-invoicing are two separate processes, and they are aimed at assisting enterprises to adhere to the guidelines set by GST. E-Invoicing is the process that involves the preparation and use of this document tools electronically in order to obtain efficiency in the reporting process of the Business to Business transactions to the GST System. E-invoice should be prepared in the format as may be prescribed by the Government from time to time and these fields shall inter alia include fields like GSTIN, Invoice No & Date of issue.

However, e-way bills are obligatory in case of transportation of goods in course of interstate sale in business to business (B2B) or business to consumer (B2C) transactions. Hence, e-invoicing is slightly on the consulting end and oriented more towards the documentation and reporting of the transaction while e-way bills are slightly on the logistics end and are oriented towards the movement of the goods. E-way bills are transmitted based on the value of the consignment, the vehicle to be used in transporting the consignment and the distance wither the consignment is to be transported to. They include using the merchandise as an entry and exit point in the country besides being used in identification and transportation of the merchandise within the country.

There are several advantages of e-way bills for businesses and the government. They assist in monitoring the flow of goods, check on tax incidences, and enhance supply chain integrity. E-way bills also help ease inter-state movement since companies do not have to get individual licenses from different states. Also, they remove the likelihood of holding up at check posts, thus making the movement of goods faster and more efficient.

The main advantage of e-way bills is that they reduce paperwork and manual dealings. Since e-way bills refer to electronic documents, firms can avoid the time and funds that would be used to acquire and renew physical permits. E-way bills also help provide real-time information to the government to track and analyze the movement of goods across the country.

In addition, e-way bills have greatly reduced tax evasion since the movement of goods and their tax credits can be easily tracked. They have also assisted in raising government tax revenue and addressed the issues of unequal competition within related sectors.

E-way bills can be generated by all user like any businessperson transporters, and some of the e-commerce entities, etc. However, there are various categories of people or companies that are exempted from the creation of the e-way bills such as; Transporting goods for own used, Non-GST Supplies and where the value is below Rs. 50,000.

Everyone in the business – traders, manufacturers or service providers, who supply goods and whose value is greater than fifty Thousand Indian Rupees are supposed to generate an e-way bill for every transport of goods. Not only transporters, even third-party logistics service providers or even the fleet operators are mandated to generate e-way bills for the consignment being moved by them for the respective customers.

E-commercem sellers that offer products to their clients through these online portals are also obligated to generate e-way bills for the products they transport or encourage the transportation of. However, persons, who have the goods for own consumption or for supply of goods, where the value of goods does not exceed the prescribed limit of one lakh rupees, are not obliged to generate the e-way bills.

The condition for an e-way bill to be issued is when the value of the consignment within the country is greater than Rs. 50,000. As amended, the Good and Service Tax Act of 2017 embodies the rules for e-way bill generation based on consignment value, mode of transport, and distance. E-way bills are also created through the GSTN portal, and companies or clients can also approach third-party partners and service providers to create them.

However, interstate movement of goods requires an e-way bill whenever the consignment value exceeds Rs. 50,000/- regardless of the distance. One more form, an e-way bill, is required when goods are transported between two states, even if the value of the consignment is less than the stipulated amount. Furthermore, for some commodities – handicraft products and precious stones in particular – e-way bills must be generated regardless of the consignment cost being below Rs. 50,000.

Another factor considered for an e-way bill is the mode of transport. Road, rail, air, or vessel transport also costs the consignment value above the set limit, so an e-way bill must be created. This means that the distance to be undertaken also determines the validity period of the e-way bill, whereby distances over 200km require a validity period of not more than 3 days. For distances over 500km, the e-way bill validity cannot exceed a day.

E-way bills are useful in enhancing supply chain efficiency by eliminating procedural blues and congesting checkpoints. With e-way bills, businesses can monitor and know the real-time status of their consignments, improving their planning and organization.

Also, the extinguishment of multipart permits specifically for transportation from one state to another has minimized delay and paperwork, hence improving on transportation speed. E-way bills also secure the chain from tax-evading and other vices related to the supply chain.

The e-way bills offer transparency to the movement of goods in real-time, helping businesses restructure their supply chain. This way, they can have better control over the stocks, coordinate production rates and resources more efficiently given that they have estimated time of arrival of raw materials and finished products. This enhanced visibility and coordination can pay handsome dividends in terms of cost reduction and increased business effectiveness.

In addition, e-way bills help make the transportation process easier and less cumbersome by decreasing the number of permits to be procured and the time consumed at check posts. This not only saves time and cuts transportation expenses but also enables businesses to reliably fulfill delivery promises, thereby enhancing consumer satisfaction and enterprise competitiveness.