Introduction
If you are also generating E-Way Bills for movement of goods where the value exceeds ₹50,000, then this update becomes very important for you from a GST compliance perspective. A new advisory has been issued on the GST portal introducing two important changes which businesses, transporters, suppliers, and GST professionals need to understand properly.
Read: GSTN Advisory on Enhancements in e-Way Bill (EWB) Portal
The first major change relates to Bill To – Ship To transactions. In such cases, where the billing address is different and the delivery is happening somewhere else, entering the Ship To GST number will now become mandatory while generating the E-Way Bill.
The second important change is the introduction of the E-Way Bill closure facility. In many practical situations, E-Way Bills remain active even though the delivery gets cancelled, invoices are cancelled, or the movement of goods never actually happens. To address such cases, a closure option is now being introduced on the E-Way Bill portal.
These changes are important from both operational and compliance perspectives and businesses should prepare for these updates carefully.
Main Discussion
The advisory specifically talks about “Mandatory capture of Ship To GSTIN in case of Bill To – Ship To transaction.”
In practical terms, Bill To – Ship To transactions are those cases where the invoice is raised on one person but the goods are delivered to another location or another party. Going forward, in such transactions, the Ship To GSTIN field will become mandatory while generating the E-Way Bill.
A practical question naturally arises in cases where the consignee is unregistered because such persons do not have a GST number. The advisory clarifies that where the consignee is unregistered, taxpayers will have to enter “URP” in the GSTIN field.
This clarification is important because many taxpayers may otherwise become confused when the portal requires a mandatory Ship To GST number but the recipient is not registered under GST.
Another major update discussed in the advisory is the introduction of the E-Way Bill closure facility.
Practically, many E-Way Bills remain active even though:
- Delivery has been cancelled
- Invoice has been cancelled
- Goods were never delivered
- Transportation never actually took place
To resolve such cases, taxpayers will now get an option to close the E-Way Bill through the portal.
Once the user clicks on the closure option, the portal will ask for the E-Way Bill number. After entering the E-Way Bill number and selecting the relevant E-Way Bill, the user can submit the closure request. After submission, a confirmation message relating to closure will be generated.
The advisory also explains who can perform the closure activity.
The following persons can close the E-Way Bill:
- Supplier
- Recipient
- Transporter
- Driver
- Authorised person
For supplier, recipient, and transporter categories, this option will be available after login on the E-Way Bill portal.
In the case of driver or authorised person, the closure option may also be available before login through mobile number and OTP-based authentication.
The advisory further explains that closure can be performed:
- E-Way Bill wise
- Date wise
Additionally, a mobile number-based closure facility will also be introduced. Once the mobile number and OTP are entered, all linked E-Way Bills may become visible, and the user can select the required E-Way Bill for closure.
The advisory also mentions that API requirements relating to this functionality will be released shortly and these features will soon become active on the E-Way Bill portal.
The important advisory wording discussed includes:
“Mandatory capture of Ship To GSTIN in case of Bill To – Ship To transaction.”
Further, in cases where the consignee is unregistered, “URP” should be entered in the GSTIN field.
Practical Impact
These changes carry important practical implications for businesses handling movement of goods regularly.
Important compliance and operational impacts include:
- Businesses must maintain proper Ship To GSTIN details in Bill To – Ship To transactions.
- In unregistered cases, “URP” should be entered correctly to avoid validation issues.
- Pending or inactive E-Way Bills relating to cancelled transactions can now be formally closed.
- Suppliers and transporters should regularly monitor active E-Way Bills.
- OTP-based closure functionality may simplify compliance for drivers and authorised persons.
Businesses may also need to update their ERP systems, operational workflows, and internal GST compliance processes once these features become active on the portal.
Conclusion
The latest E-Way Bill advisory introduces two significant compliance-focused changes aimed at improving reporting accuracy and operational control under GST.
Mandatory reporting of Ship To GSTIN in Bill To – Ship To transactions will strengthen transaction-level validation, while the E-Way Bill closure facility will help businesses manage cancelled or inactive transactions more efficiently.
Businesses involved in regular transportation and supply of goods should understand these changes carefully and align their compliance processes accordingly to avoid future issues on the GST portal.
Key Takeaways
- Ship To GSTIN will become mandatory in Bill To – Ship To transactions.
- “URP” should be entered where the consignee is unregistered.
- E-Way Bill closure facility is being introduced on the portal.
- Closure can be performed by supplier, recipient, transporter, driver, or authorised person.
- OTP-based closure functionality will also be available.
- Businesses should update operational and compliance processes accordingly.
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