e-Way Bill- An overview
E-way Bill under GST Regime is an important transportation document, that a transporter must have while transporting a consignment worth the value of Rs. 50,000 and more.
e-Way Bills are considered mandatory documents as per rule 138 of CGST. And non-compliance with the rule is going to lead to penalties and seizure of goods.
The e-Way Bill rule is a government initiative to curb the evasion of taxes and ever since its implementation the government has been able to keep a track on the transport of goods both inter and intrastate.
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Since its implementation in 2018, the businesses now are familiar with the consequences of non-compliance with the rule and are generating the Electronic Way Bills without fail.
e way bill generation has also helped the Government in making sure that at least one of the 3 parties- The Supplier, The Buyer and the Transporter, is registered under GST. Since only GST Registered Supplier/Buyer and E-Way Bill enrolled transporters, can create the e-Way Bills.
Importance of e-Way Bills- Severe Consequences
The e-Way Bill is the Government’s tool for tracking the supply of goods from The Supplier to the Buyer in order to check the Tax Evasion which is the prime concern of the Government.
So the Government is dedicated to ensuring compliance of the business with the e-Way Bill rule. The consequences of non-compliance can draw losses towards Businesses.
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Without an e-Way Bill, it is impossible for the consignment to travel far. At any one of the multiple check-posts, the vehicle can be stopped and the transporter can be asked to show the Electronic Way Bill.
If a vehicle fails to present an e-Way Bill the then the taxpayer is liable to a penalty of Rs. 10,000 Or the amount of tax, considered to be evaded by the taxpayer, whichever of the two is greater.
On any particular check-post, the vehicle can also be physically examined in case of no e-Way Bill. Both the Vehicle and the goods can be seized or confiscated.
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On seizure, the penalty may increase and the taxpayer must then pay 100% of the tax payable value. If the taxpayer doesn’t wish to pay the tax, then he must pay 50% of the value of goods being transported.
The non-compliance with the e-Way Bill attracts direct and indirect monetary losses to the business in the form of penalties, a frictional halt to the smooth Business running process and unproductivity.
When and who should generate an e-Way Bill?
Widely, the Supplier or the owner of the goods is accountable for the e-WayBill,and the e-Way Bill must be generated by him, primarily. But in special cases, even the Buyer and the transporter can generate the e-Way Bill for a Consignment.
Given the condition that whoever generates the e-Way Bill must be a Registered taxpayer under GSTand should do their GST Filing. The transporter must at least be enrolled on the e-Way Bill Portal to be able to generate the e-Way Bill.
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The e-Way Bill needs to be generated if the value of goods exceeds Rs. 50,000. In special cases of handicrafts and job-work goods also require E-way Bills even when the value is less than Rs. 50,000.
The e-Way Bill must be generated before the movement of goods starts. Since at any point, the vehicle can be intercepted and be asked for the e-Way Bills by the officials.
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Hence the e-Way Bill should be generated prior to the initiation of the movement. The transporter must also have a copy of the Invoice or the delivery challan, along with the e-Way Bill as a requisite.
Fake Invoices and a potential Solution- e-Way Bills
The Government to this day continues to face the ache of Tax theft and evasion despite all the measures taken to date. However, e-Way Bill was fairly effective in the context.
e-Way Bills are efficient in identifying Fake Invoices and Defaulter Taxpayers. And since it’s implementation, it has helped the Government to save tax worth of Crores.
In the beginning, due to the failure of technologies and improper planning, the e-Way Bill System has faced criticism and failures but over time e-Way Bill has become a useful document.
The setup of bogus companies, generation of Fake invoices and claiming of fraudulent ITC, is the short and effective process to rob the Government’s fiscal assets.
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e-Way Bills keep theses bogus activities in line. Several changes have recently been made in the e-Way bill system. such as blocking of e-Way Bill generation on not or delayed filing of taxes.
Integration of VAAHAN with the e-Way Bill system, to get the authenticity of the Vehicles that transport the consignments.
Matching of the e-Way Bill and GSTR-1 data, to tally the count of eligible Invoices and that of the e-Way Bills made. On mismatch, the taxpayer is liable to Notices and Scrutinies.
In the future, it is assumed that the e-Way Bill portal will auto calculate the distance between the pin codes of the Supplier and the destination of the goods.
Generate e-Way Bills Quickly and Effortlessly
e-Way Bill generation through the e-Way Bill Portal, downloading the file in JSON format and again converting it into a user-friendly format is as tedious a job as it looks.
Accounting of the e-Way Bills is essential but it should not essentially be this tough and lengthy. So GSTHero comes with a solution to this problem.
Bulk generate, edit, cancel and consolidate your e-Way Bills in a few hasslefree steps form your billing systems with GSTHero Software Solutions.
GSTHero ERP Plug-ins enables the user to perform all the e-Way Bill operations on the ERP itself without paying unnecessary multiple visits to the e-Way Bill Portal.
GSTHero is an ISO certified and Government-authorized GST Suvidha Provider. That provides the most efficient and user-friendly Software Solutions for the most wicked GST Compliance related problems.
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With the GSTHero ERP plug-ins and Integration, the user can save their time and efforts in the e-Way Bill generation process. Generate and print e-Way Bills directly from the ERP without JSON Files.
GSTHero delivers high-end services, with sturdy software and a dedicated support team, for high-end after-sales training and support to ensure smooth user experience.
GSTHero also enables the user to rectify the errors, if any, in the preview. Automation of the process also eliminates the chances of human errors. GSTHero makes the e-Way Bill generation process quick, effortless and accurate.
The user can also import the e-Way bill data for e-Way Bill and GSTR-1 Reconciliation as well as for GST Return filings. So, GSTHero simplifies the existing as well as the upcoming steps of the e-Way Bill Process.
About the Author– GSTHero- Making Life Simple! GSTHero is the best GST filing, e-Way Bill Generation and E-Invoicing Software in India. GSTHero is a government authorized GST Suvidha Provider. Both Businesses and Tax Practitioners can file GSTR 1, GSTR 3B, GSTR 9 and GSTR 9C with all supporting reports. 1 Click Auto Reconciliationand report-matching feature helps you in claiming up to 100% ITC and finds your GST Defaulting Suppliers. GSTR2A vs GSTR-3B, GSTR-1 vs GSTR-3B, ‘GSTR-1, GSTR-2A and GSTR-3B’ annual report matching is also provided by GSTHero.
GSTHero ERP Plugins provide 1 Click e-Way Bill and E-Invoice, Generation, Operation and Printing from your own ERP like Tally, SAP, Marg, Busy, Microsoft Dynamics, Oracle and others itself with high data security.
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