Under specific circumstances, the Goods and Service Tax (GST)-implemented e-way bill system monitors the transportation of consignments. Before beginning the shipment of goods worth more than ₹50,000, a taxpayer must create an e-way bill. However, some mistakes made by taxpayers have been reported. Such e-way bill mistakes should be avoided by registered users since these may interrupt the process of supply chain or result in penalties. Continue reading to learn about some of the typical errors and how to avoid them.
The e-way bill system does not permit the submission of multiple challans or invoices to generate a single e-way bill. Each invoice or challan is considered a separate consignment. Thus, it is imperative to generate a separate e-way for every invoice. Even in the case of multiple invoices with the same consignee, an e-way bill has to be generated for each invoice. Despite this requirement, it has been recorded that businesses or taxpayers tend to collate the invoices and generate one e-way bill.
Part-B of the e-way bill requires the taxpayer to furnish the vehicle number. This number must be entered in a valid format or it disrupts the system’s functions. System records state many users do not furnish the number of the vehicle in a systematic format. The government has specifically issued FAQs that clarify how a vehicle number has to be entered in the system.
For e.g., if the vehicle number entered on the registration certificate is ‘MH 2 678’, then the accepted format to be filled in the system is ‘MH02068’.
With the recent updates, the e-way bill system now provides the option for bulk generation of bills. This upgrade has increased the efficiency of the system and made the process more convenient for users. A taxpayer can now upload multiple invoices at a given point and generate multiple e-way bills at the same time. However, there’s a process that needs to be followed to use this facility. The user has to prepare the request through a JSON-enabled excel file. Once the file is updated on the portal, it undertakes the generation of e-way bills.
Most users falter when requesting a bulk generation. They end up using a used template without paying attention to any previous entries that may have been done on the same sheet. Submitting this sheet leads to errors with e-way bills’ generation and future records.
It is often found that the taxpayers generate e-way bills using a different ID every time they make an entry. Many times, a single user who generates e-way bills for different entities ends up using the IDs interchangeably. This way of bill generation leads to the bills having incorrect GSTIN. Thus, it is very important to be consistent with the user IDs to avoid errors with recording.
The government has put together a facility that allows an extension provision on the validity period of an e-way bill. This validity can be extended before or after eight months of expiry. However, most users are unable to make use of this facility. This is partially fueled by the fact that the tracking mechanism on the e-way bill portal is not fully effective.
When generating an e-way bill, every user needs to compulsorily provide the vehicle number and transporter ID. Even if the consignment is undertaken by a third-party transporter, the user has to provide the transporter ID. The vehicle number too must be furnished on the portal. It is often recorded that users do not fill in the transporter ID when using third-party transporters for consignments, and stop at the vehicle number. Then, in case of a vehicle breakdown during transition, the transporters are unable to access the portal. As a result, the vehicle number tends to be incorrect on the e-way bill, leading to further confusion.
According to the provisions of e-way bills, any third party may register and produce an e-way bill using either a specific solution that is automated or an e-way bill site. This includes the:
GST unregistered transporter
GST registered transporter
Sometimes in these circumstances, the third party tends to forget to include their GSTIN, such eway bill mistakes make it difficult for businesses or taxpayers to keep accurate records of the e-way bill.
The corporation or the taxpayer may occasionally register themselves under a different name on the e-way bill site before creating an e-way bill. When this e-way bill mistake is made, if the shipment is scrutinised while in transit, there will be severe penalties imposed. This could prove to be challenging when the company is being evaluated and audited.
When generating an e-way bill, the user must ensure that all the essential documents are attached. It is also vital to enter the appropriate details. Quite often, authorities have found that users do not enter the correct supporting details when generating e-way bills. This leads to major issues with the consignments. In such cases, authorities have no choice but to detain goods and levy a penalty. Such errors also lead to challenges at the time of auditing and assessment. Users must be mindful when providing details of supporting documents.
In conclusion, the errors listed above are easily avoidable. Taxpayers just need to be particularly mindful when generating an e-way bill to minimize reconciliation issues.
If an incorrect e-way bill has been generated, there is no way to edit or make a reentry. The user will have to cancel the e-way bill and generate a new one. However, the incorrect e-way bill must be cancelled within 24 hours of generation.
Even in the case of rejected material, the supplier needs to generate the e-way bill for ‘sales return’, and arrange for the movement of the rejected material.
An e-way bill can be generated for a goods consignment that has a back-dated invoice. However, it must be done before the movement of the goods.
The responsibility of generating an e-way bill lies with the consignee or consignor when the value of the goods exceeds Rs. 50,000. The responsibility may also be passed on to the transporter when the goods are transported from the location of the transporter.
An e-way bill must be generated when transporting goods that exceed the value of Rs. 50,000.
(i) When transporting the goods listed below, an e-way bill is not necessary to be created:
Liquified petroleum gas for delivery to the consumers who fall under the non-domestic exempted category;
Postal luggage moved by the Postal Service;
Kerosene sold at a PDS;
Jewellery, goldsmith and silversmith crafts, and other articles;
Cultured or natural pearls, precious metals, semi-precious or precious stones, and metals clad with precious metal;
Used domestic and personal items;
Coral, both worked (9601) and unworked (0508)
(ii) An E-way bill is not necessary to transport goods to a container freight station or an inland container depot for customs clearances from an airport, customers port, customs station, and air cargo station.
(iii) E-way bill generation is not necessary when goods are transported by non-motorized modes of transportation.
(iv) When transporting the items listed below, an e-way bill is not necessary to be created:
Alcoholic liquor made for human consumption
Aviation turbine fuel
Petrol (motor spirit)
(v) An e-way bill is not required under the following circumstances when goods are being transported:
Under a customs bond from inland container depots or container freight stations to customs ports, airports, air cargo complexes, and land customs stations;
Or when they are being carried from one customs port or station to another customs port or station;
Or when they are being transported under customs seal or supervision;
Or when they are transiting cargo from or to Nepal or Bhutan, an e-way bill is not necessary to be created.
(vi) An e-way bill is not required when a local government, the State government, or the Central government acts as the consignor transports goods via rail.
(vii) Any e-way bill will not be required when a defence formation is acting as the consignor or consignee for the shipment of commodities.
(viii) If empty freight containers are being transported, an e-way bill is not necessary.
(ix) The generation of an e-way bill is not necessary when items are being carried for weighing wherein the distance between the place of business of the consignor and the weighbridge adds up to less than 20 km. However, a delivery challan would be required to be presented while moving items.
(x) Apart from de-oiled cake transportation, the items which are listed in the scheduled annex to Notification No. 2/2017-Central Tax (Rate) of 28.06.2017 do not need you to generate an e-way bill.
If necessary, the individual who created the e-way bill has the option to cancel it. For instance, a taxpayer may decide to cancel within 24 hours if the transporter of the supplier is unable to deliver the items to the recipient after the taxpayer has generated an e-way bill. E-way bill rejections involve checking the GSTIN of the taxpayer against a bill produced by another taxable transporter or person. In this case, if the recipient decides to reject the bill as it has been generated by the supplier and does so via the site, the rejection will remain. Therefore, the recipient can reject the consignments using this option if it was not received as described in the e-way Bill.