Since it has come into effect, the Goods and Service Tax (GST) system has undergone numerous changes. On October 1, 2020, the system had a mandated introduction. Currently, all taxpayers with a turnover between ₹50 Crores and ₹100 Crores are required to use the e-invoicing system. The annual turnover may be from the fiscal years starting in 2017 to 2018. Continue reading to learn more about e-way bills, e-way bill changes, and how they relate to e-invoicing systems.
When invoices first started to be produced, a significant problem for the government was the prevalence of persons using fraudulent invoices to evade taxes and conduct fraud. By requiring the use of e-Invoices from government portals, a mechanism for electronic invoicing was proposed to put an end to these fraudulent practices.
Every eway bill holds two parts. One of the parts contains the invoice details like the invoice number, HSN codes, delivery address, recipient and supplier's GSTIN and much more. On the other hand the other part contains the transporter information like vehicle number, transporter ID and much more. Under the current system, the e-way bill is generated for the both parts in the e-way bill portal as the taxpayers manually update their transporter and invoice details.
With the mandated implementation of the e-invoicing there will be noticeable impacts on the e-way bill. There is no need to get new registration. If you are a pre-existing user of the e-way bill portal can login with the same details into the portal of e-invoice. When the e-invoice is validated then both parts of the e-way bill would be automatically computed with the condition that few of the optional details are updated in the e-invoice.
The e-Way bill is an important component of the GST system. It essentially comprises two parts: Part A includes details on the GSTIN of the supplier, invoice number, HSN codes, delivery address, and more. Part B, on the other hand, includes details pertaining to the transporter such as the vehicle number, transporter ID, etc. As part of the current setting, the two parts are generated through the e-Way bill portal. However, taxpayers must manually update the invoice details and transporter details to do the same.
With the mandatory requirement to implement e-invoicing, the effects will also reflect on the e-Way bill system. Firstly, users of the e-Way bill can use their existing credentials to log in to the e-invoice portal. They do not have to undertake new registration. Through the e-invoicing portal, the e-Way bill will get auto-populated with all the required data. The information gets auto-populated only once the e-invoice is updated. To put simply, the integrated process has been put in place to simplify and ease the process of eway bill generation.
At present, the e-invoice portal provides the following essential facilities:
Enable e-Way Bill Generation through IRN: The e-invoice portal allows taxpayers to generate an e-Way bill by simply entering the IRN.
Bulk e-Way Bill Generation: e-Way bills can be generated in bulk. However, this facility is only provided to businesses that undertake a very large number of transactions on a given working day.
Avail the Printed e-Way Bill: Users of the portal can print the e-Way bill (EWB). All you have to do is click on the ‘Print EWB’ option and enter the e-Way bill number. Once done, the bill will be displayed with the option to get a print.
The integration of the e-Way bill with e-invoicing is essentially to automate and make the process easier. If the taxpayer has not filed two or more consecutive GST returns, then the generation of e-Way bills is blocked. The integration between the two systems brings about the following benefits:
Ensures easy compliance for taxpayers
Automates the process
Apart from the integration between the e-Way bill and e-invoicing, the authorities have also linked the e-Way bills with the GST return filing. Thus, the government can benefit through reduced tax evasion owing to this system.
After the implementation of the e-Invoicing system there would be no visible changes during the procedure of an e-way bill generation. Although, you can now avail the optional facility provided in the e-invoice portal to generate your e-way bill using IRN. To do so follow the given steps:
Upload your invoice in the registration portal of the invoice.
GSTN will then verify your mandatory details.
The IRP will then issue an invoice reference number that is unique and a QR code, once that you have been verified.
This data will then be automatically transferred to the e-way bill portal. The APIs will then be utilised to generate the e-way bill using IRN.
You then need to log into your EWB portal and then enter the IRN that is on your invoice that you need to generate.
Both parts on the EWB will be computed automatically if the necessary details are kept updated on the e-invoice.
Select on submit. In case of no errors then without any difficulty the EWB will be immediately generated which you can download either as a PDF file or JSON.
At the moment, there is no provision to address the impact of the e-invoice system on the e-way bill in case of amends. If the e-invoice is cancelled, the e-way bill too gets cancelled. However, authorities are working on ensuring a system in place to deal with this issue.
The e-invoice and e-way bill system is an important part of the GST system and helps streamline the process for taxpayers. It is vital to stay well-informed on all the updates made in regard to the system. Follow Bajaj Markets to know more about the GST regime and its related components.
Following are the benefits of e-invoicing:
One GST filing is necessary for all invoicing information.
Eliminating invoice inconsistencies during reconciliation.
Due to the use of various applications, interoperability problems with standard invoicing existed.
Real-time invoice tracking is possible.
The primary aim to implement e-Invoicing and linking it with e-way bills is to ensure the procedure is automated and simple. In addition to this, the EWB has also been linked with the return filing of GST. Your e-way bill will be blocked if you have more than two GST returns pending that require to be filed. These changes will benefit your business as there will be:
Your convenient compliance
Accuracy that comes with an automated process.
With the mandated implementation of e-Invoicing, there will definitely be some considerable changes that can be witnessed by those who regularly generate e-way bills. However, these modifications and changes that come with the linking of e-invoice with EWBs are to ensure a smoother and transient process for both you and the government.
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From April 01, 2021, all taxpayers with an aggregate turnover above ₹50 Crores in a given financial year must generate the e-invoice. It is expected that all taxpayers will follow the same system over the coming period. The same will be undertaken in a phased manner.
Yes, the e-Way bill can be generated regularly. Taxpayers can also use the IRN system for e-Way bill generation.
No, once an e-Way bill is created, the data cannot be revised. Thus, the invoice number cannot be altered.
To cancel your e-Way bill, follow the steps mentioned below:
Step 1: Visit the official GST e-Way bill portal, i.e. ewaybill.nic.in.
Step 2: Click on the ‘e-Way Bill’ tab and click on the sub-option ‘Cancel’.
Step 3: Now, enter the 12-digit e-Way bill no of the bill that must be cancelled, and click on ‘Go’.
Step 4: You have to enter a suitable reason for the cancellation. Once done, the e-Way bill will get cancelled.
The process to cancel the e-invoice is similar. To begin,
Step 1: Visit the official GST e-Way bill portal at ewaybill.nic.in.
Step 2: Click on the ‘E-invoice Cancel’ tab.
Step 3: Enter the ‘Ack No’ and ‘IRN’ of the e-invoice, and click on ‘Go’.
Step 4: Select the reason for cancellation and click on ‘Submit’ to cancel the e-invoice.
You can generate e-way bills using IRN via API, which will soon be released.
Yes, as of right now, each system will function separately. However, over time, certain taxpayers' access to direct EWB generation would be blocked.
EWB can be regenerated on the same document, but not IRN, in accordance with policy.