Eway bills Rules Compliance & its Impact on Transporters & Logistics operator

In this article, we'll go over some of the key points regarding E-way bill compliance and explain how a transporter should handle real-world concerns with handling e-way bills on a case-by-case basis, as well as the impact on logistics and transportation.

Transporter's business under the previous administration

The law in Karnataka under the concept of e-Delivery Note required every dealer to notify the department about a goods movement transaction (bulk) before the goods movement began, as opposed to the previous practice of dealers moving the goods first and then informing the department later, periodically. Since some dealers found it challenging to receive printouts, the e-Delivery Note method was changed to e-SUGAM. Waybills were, therefore, the responsibility of the vendors, not the transporters.

An overview of E-Sugam Karnataka

Under e-SUGAM, the system validates and creates an exclusive number as an acknowledgement, known as the E-SUGAM number, upon receipt of transaction information of items being transported with a value over Rs 25,000 from the dealer. This number and the E-sugam form serve as the transport vehicle's passport at the checkpoint. Each state had its formats like declaration forms, permits, and waybills.

E-way bill compliance requirements for transporters

An E-way bill is a specific bill or document electronically prepared for a consignment or movement of goods with a value of more than Rs. 50,000, whether interstate or intrastate. EWB must be produced by the consignor or vendor. In cases when the seller does not generate, the transporter may do so with the seller's consent.

The person in charge of a conveyance must have a copy of the e-way bill or the e-way bill number obtained from the common portal and the tax invoice, bill of supply, delivery challan, or bill of entry, depending on the situation.

E-way bills cannot be corrected after they have been generated. After it is generated, it can be cancelled, nevertheless, within 24 hours.

The registered person can input the transporter id in the transportation details area when generating an e-way bill (Part B). The e-way bill will be assigned to that transporter for updating the vehicle details after entering the 15-digit transporter id that the transporter has provided. The registered individual who originally developed the EWB loses the ability to alter the Transporter after the transporter uses the option to "Update EWB Transporter" to reassign another transporter.

The vehicle number on an E-Way Bill can be modified as many times as necessary before its validity expires.

If the department checks the e-way bill, the most recent vehicle number should be present and should correspond to the vehicle transporting it.

Often, the transportation of products involves stopping at intermediate locations and heading to the final location. Additionally, items are delivered through various means of transportation, including road, rail, and air. In all situations, the transporter must update Part B of Form GST EWB 01 with the vehicle number of the new vehicle and/or mode of transportation. A physical copy of the e-way bill is required for goods delivery.

Multiple e-way bills must be prepared if the supplier issues more than one invoice with the same consignor and consignee for the transfer of goods. Whether the consignors or consignees are the same or different for each invoice, a separate e-way bill must be generated.

Regardless the consignors or consignees are the same or different for each invoice, a separate e-way bill must be generated.

It is not possible to combine multiple invoices into a single e-way bill. However, if they are all transported in the same vehicle, one Consolidated EWB can be generated after creating all these EWBs for transportation purposes.

Based on the "approximate." value, the EWB's validity period is determined. When generating the EWB and the Type of transportation, the distance entered. 

The vehicle number is not required when the goods are carried within a State over a distance of less than fifty kilometres from the consignor's place of business to the transporter's location for additional transportation.Similarly, if the distance travelled by the goods from the transporter's business to the consignee's business within the State is less than 50 KM, then providing vehicle details is not necessary.

According to clause 138(7), an E Way bill must be generated if there is a movement of goods worth more than Rs. 50,000 in a vehicle or conveyance (either per invoice or as a result of the average of all invoices in a vehicle/Conveyance). However, according to the most recent update as of March 23, 2018, a transporter is not required to generate an e-way bill if the consignment is less than or equal to Rs. 50,000 but together exceeds Rs. 50,000 until a date is announced.

E-way bills are not required for empty carriers or vehicles because there is no movement of goods and no corresponding value. Additionally, when empty cargo containers are being moved, E way bills are not required to be generated. The effective dissolution of state borders will undoubtedly be one of the e-way bill's major accomplishments. Any business that ventured to branch out outside its home state was hindered by the amount of time lost at state borders to validate documents with respect to inter-state movements of goods.

Conclusion 

The e-way bill offers various benefits, including improved tracking, increased efficiency, and transparency. The e-way bill has had a significant impact on how logistics and transportation companies conduct business. You can conduct business across state borders more successfully if you know how to create an e-way bill. With a busy accounting software you can implement e-way bills conveniently.