Enhancements in e-way bill system

Enhancements in e-way bill system

E-way bill refers to an electronic way bill for movement of goods to be generated on the e-way bill portal. While an e-way bill is generated, a unique e-way bill number is allocated and is available to the supplier, recipient, and the transporter.  An e-way bill will be issued when there is a movement of goods in a vehicle of value for more than INR 50,000. However, in certain states the limit has been extended as decided by the state government:

  • In relation to a ‘supply’
  • For reasons other than ‘supply’
  • Due to inward ‘supply’ from an unregistered person.

Further, new enhancements have been introduced in e-way bill system in order to ease the process for the taxpayers and the transporters which are mentioned as below:

  1. Auto distance calculation will be based on PIN codes for generating e-way bill:
    There will be an auto calculation of distance between the source and destination, based on the PIN codes.  This will help e-way bill system to calculate and display the estimated distance between the supplier and recipient addresses. Route distance calculation between source and destination uses the data from various electronic sources. If the PIN code entered is incorrect, the system would alert the user as invalid code. However, he can continue entering the distance. Further, the e-way bills having invalid PIN codes are flagged for review by the tax department.
  1. Multiple e-way bill generation blocked on one invoice / document :
    (One invoice, one e-way bill policy)
    Generating e-way bill with a specific invoice number, none of the consignor, consignee or transporter can generate the e-way bill with the same invoice number.
  1. Extending e-way bill in case of transit / movement consignment:
    To reach the form, the taxpayer or the transporter can login to the e-way bill portal, navigate through the menu. Once after this, to avail the option, go to the form of extension validity and choose “yes” for the extension. Below are the steps for transit and movement:
    • Movement:
      On selecting “in movement” the system will prompt the user to select the “Mode” and “Vehicle” details
    • Transit:
      On selecting “in transit”, user needs to select the “Transit type” i.e. on road, warehouse or others.In both the scenarios, the destination PIN will be considered for calculating the distance for movement and validity date.

    In both the scenarios, the destination PIN will be considered for calculating the distance for movement and validity date.

  1. Report on list of e-way bills about to expire soon
    Taxpayers or transporters can view the list of e-way bills about to expire in a period of 4 days [from current date (T) then (T)-1, (T) +1, (T) +2]. It is possible to keep track of expiry dates for each of the generated consignments.

In conclusion, these enhanced features can add value to business and tax officers as well aiming at propelling ease of doing business together with acting as a deterrent for tax evaders. This can help in analyzing the data and ensure that the goods reach the destination within the valid time period. But failure to produce an e-way bill can attract a penalty of INR 10,000 or amount of tax sought to be evaded, whichever is higher. An e-way bill can be updated once it is created. Details on the transporter, consignment, consigner and also the GSTIN of both the parties can be updated in the existing e-way bill provided the bill is not due on its validity.

Our experts can assist a seamless gateway for any sort of services or updates in relation to e-way bill generation, GST registration, GST invoicing, GST assessments, GST audits and filing of GST returns.

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