E-Way Bill System: FAQs, Compliance and Impact in India

Introduction: The E-Way Bill system in India stands as a pivotal component in the nation’s quest for a modernized tax framework. Engineered to enhance transparency, curb tax evasion, and streamline logistics, the E-Way Bill system has become a transformative force in the movement of goods. This article delves into the nuanced world of E-Way Bills, unraveling frequently asked questions (FAQs), elucidating compliance requirements, addressing common issues, and shedding light on its profound impact on the Goods and Services Tax (GST) and the broader landscape of modern tax systems in the country.

FAQs ON E-WAY BILL

E-Way Bill system include transparency, reduced tax evasion, and streamlined logistics. The E-Way Bill system has significantly improved tax compliance by providing a digital trail of goods movement. It has also reduced paperwork and delays. The E-way Bill system offers real-time tracking of goods, facilitates paperless movement, and enables data validation for accurate tax reporting.

In this Article, we will demystify the E-way Bill system by addressing frequently asked questions (FAQs). We will clarify the process and requirements to ensure smooth compliance with E-way Bill regulations.

1. What is an E-way Bill?

An E-way Bill is an electronic document required for the movement of goods worth over a certain value. It contains details such as the consignor, consignee, and transporter. The E-way Bill needs to be generated on the E-way Bill Portal.

2. Who needs to generate an E-way Bill?

The consignor, consignee, or transporter needs to generate an E-way Bill when goods are transported for a value exceeding the specified limit. It is mandatory for inter-state movement of goods and optional for intra-state movement in some states.

3. How to Generate an E-way Bill?

To generate an E-way Bill, one needs to visit the E-way Bill Portal and fill in the required details such as invoice number, date, and value of goods. After filling the form, a unique E-way Bill number is generated.

Following steps is required to be followed in order to generate an E-way bill:

• Using the credentials on can login to E-way bill portal
• After that click on ‘Generate New’ option and fill in the required details, such as the GSTIN of the supplier and the recipient, the value of the goods, the invoice number, the date of the invoice, the HSN code, and the vehicle number.
• Once the details are being filed, click on the ‘Submit’ button.
• The system will generate the E-way Bill, which can be downloaded and printed.

The process of creating an E-way Bill is simple and easy to use. The E-way Bill generation process is simple to follow, and the portal is designed to give businesses a hassle-free experience.

4. What are Common Issues with E-way Bill Generation?

Some common issues include errors in entering the details, incorrect vehicle number, or system downtime. It’s important to double-check the details before generating the E-way Bill to avoid any discrepancies during transportation.

5. Is the E-way Bill mandatory for all types of goods?

The transportation of goods valued at more than INR 50,000 within India is required to have an E-way Bill, with a few exceptions. These include goods transported by non-motorized vehicles and specific goods like currency, jewellery, and petroleum products.

6. How long is an E-way bill valid?

A document known as an e-way bill is necessary for the transportation of goods under the GST system. The length of the trip and the mode of transportation determine an e-way bill’s validity. The validity period for regular cargo is one day for every 200 kilometers of travel. The validity period for over-dimensional cargo is one day for every 20 kilometers of travel. The e-way bill’s creation date counts as the start of the validity period.

7. What if the person sending the goods is an unregistered supplier?

It is also necessary for the individual who is not registered under GST to produce a E-way bill. It’s crucial to remember this in the event that an unregistered individual supplies a registered individual. Subsequently, the registered individual, or the recipient, must comply with all E-way bill requirements.

8. If any information is submitted incorrectly in the e-way bill. Can I edit or change the e-way bill?

Once generated, the e-way bill cannot be changed or altered. It can only be updated to Part-B. Furthermore, Part A cannot be changed after it has been entered and submitted incorrectly. The e-way bill that was created using the wrong data in this case needs to be cancelled and created again.

9. Does the generation of an e-way bill apply to sales returns, rejections, etc.?

Yes, for every movement of goods, an e-way bill must be generated. As a result, even in cases of sales returns, an e-way bill must be generated. In this particular instance, the person responsible for causing the movement of the sales return or the transporter actually moving the goods must generate the e-way bill.

10. What occurs if an electronic way bill is generated but not cancelled or if there is no movement?

The e-way bill should ideally be cancelled in this situation if it was generated but there was no movement of goods. The system would not permit the cancellation, though, if it is not done within the next 24 hours. Within 72 hours of the e-way bill’s generation, the recipient may request via the common portal to reject the bill at his end. Nevertheless, the rules don’t provide a mechanism if the 72-hour window for rejection also passes. Therefore, it is crucial that any e-way bills that are invalid or incorrectly generated, or that are not supported by the proper movement of goods, be cancelled right away.

11. How does the taxpayer designate or assign the transporter the e-way bill for transportation?

The taxpayer has the option to enter the transporter ID in the transportation details section when generating an e-way bill. The e-way bill will be attributed to the transporter if he enters the 15-digit transporter ID that was provided by that person. The transporter can then log in and update it with additional transportation details.

12. If the e-way bill’s validity expires, what should be done?

Delivery of the goods must occur during the E-way bill’s validity period. The items are not to be moved if the e-way bill’s validity expires. However, after updating information in Part B, the transporter may create another e-way bill in the event of “exceptional nature.” Additionally, as stated in the notification issued in this regard, the Commissioner may prolong the validity period of an e-way bill for specific categories of goods.

Conclusion:

In conclusion, the E-way Bill system plays a crucial role in modernizing tax compliance by ensuring the smooth movement of goods and promoting transparency in the supply chain.

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The above article is written by Mr. Mihir Verma (mihir.verma@abacussolutions.co.in) and reviewed by Mr. Suyash Tripathi (suyash.tripathi@abacussolutions.co.in).