Since introducing e-way bills in India, the logistics industry has significantly changed its operations. The e-way bill system has made it easier for businesses to comply with GST regulations and has resulted in faster movement of goods. According to reports, the implementation of e-way bills has reduced transit time by up to 30%, and logistics costs have decreased by up to 5%. The e-way bill system has also improved transparency in the logistics sector, reducing tax evasion and corruption.
However, there have been challenges in implementing e-way bills, including technical glitches, lack of awareness among businesses, and the need for seamless integration between different software platforms. Nonetheless, the logistics industry in India continues to grow, with an expected compound annual growth rate of 10.5% between 2020 and 2025, and the e-way bill system is set to play an essential role in this growth.
E-way Bill Compliance Requirements for Transporters
An E-way bill is a permit document generated for transporting goods worth more than Rs. 50,000, whether within the state or across state borders. The responsibility of generating the e-way bill lies with the consignor or vendor who must produce it during the transportation of the goods. However, when the seller fails to generate the e-way bill, 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 within 24 hours.
While generating an e-way bill, a registered individual can add the transporter ID to the transportation details. This enables the e-way bill to be assigned to a particular transporter for updating the vehicle details. The transporter can do this by entering the 15-digit transporter ID provided to them. Once the transporter has used the “Update EWB Transporter” option to reassign the e-way bill to another transporter, the registered individual who initially generated the e-way bill loses the ability to alter the transporter details.
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 to transfer 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.
Type of conveyance
Validity of EWB
Other than Over dimensional cargo
Less Than 100 Km
For each additional 100 kilometres or part thereof
Additional 1 Day
For Over dimensional cargo
Less Than 20 Km
For every additional 20 Kms or part thereof
Additional 1 Day
The vehicle number is not required when the goods are carried within a State over a distance of less than 50 km 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 unnecessary.
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 or 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.
What Impact does E-way Bill have on the Logistics Industry?
The e-way bill system, which leverages the benefits of Information Technology, promises better revenue and is expected to be an effective tool for tracking the movement of goods and preventing tax evasion, thus ensuring compliance with the GST Law.
For transporters, the benefits of the e-way bill can be summarised as follows:
Streamlined Documentation: The e-way bill eliminates the need for the cumbersome state-wise documentation previously required for the movement of goods. Additionally, transporters can install an RFID device in their vehicles, eliminating the need for physical copies of the e-way bill, as the device can be used to map and verify the bill.
Faster Movement of Goods: The removal of check-posts at state borders and national highways, made possible by the e-way bill, means that the movement of goods will be faster and more efficient.
Lower Logistics Cost: The e-way bill reinforces proper invoicing and reduces tax evasion, ultimately resulting in lower logistics costs. This is expected to bring down India’s logistics cost-to-GDP ratio, which is currently higher than in other countries in the long run.
The e-way bill offers various benefits, including improved tracking, increased efficiency, and transparency. The e-way bill has significantly impacted 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 busy accounting software, you can implement e-way bills conveniently.