What is an E-Way Bill?
The e-way bill is the electronic report given via online Goods and Services Tax (GST) network intended for the transportation of goods. It is important that every client who intends to use CaptainBiz should be informed that an e-way bill is required for movement of goods worth more than ₹50,000 across the states within India. It provides evidence of the shipment and features critical information of the consignment.
Why is the E-Way Bill Important?
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Seamless Transportation:
The e-way bill declogs the supply chain hence leading to effective flow of goods across the states. This efficiency is something that CaptainBiz claims to focus on in terms of improving the business.
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Enhanced Compliance:
Businesses can be compliant with GST regulations after the government implemented the e-way bill system. Our subject focus, CaptainBiz, gives advice on how to overcome these regulations in order to monitor the circulation of goods, and insofar to fight against tax fraud.
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Real-Time Tracking:
The e-way bill enables authorities to have a check on the transportation of goods as they happen. It is due to these reasons that transparency and accountability within suppliers’ chain corresponds with CaptainBiz main aim of providing business with revolutionary solutions.
Also Read: What is an e-way bill?
How To Create an E-way Bill ?
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Log in to the GST Portal:
Traders have again been forced to login to the GST portal through their login id and password.
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Enter Details:
In this part, provide the full information about transported goods: Invoice number and value, HSN code that indicate the type of conveyed products, and transshipment data.
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Generate the Bill:
Once all details are fed into the system then an e-way bill is created. The system generates a distinct E-Way Bill Number (EBN) which is important to be produced during transportation.
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Validity:
The e-way bill has its validity, and it depends on when the distance has been covered from one state to another state. For instance, you can redeem it for one day in every 100 kilometers a car has been driven.
Also Read: E-Way Bill Generation Process: Step-by-Step Guide
State and Federal consequences for noncompliance
Failing to generate an e-way bill when required can lead to severe penalties, including:
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Fines:
A good reasonable equivalent to the tax payable on the goods could be made.
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Detention of Goods:
Officials should retain products if the correct papers are not supplied during transit.
Why Choose CaptainBiz?
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Expert Guidance:
We offer you the information and services of our experienced professionals to guide you about GST and e-way bills. It was designed to make legal matters more understandable whilst also keeping our clients up to date.
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Seamless Integration:
CaptainBiz has developed an easy to use software solution that can be easily interfaced with your systems so that you do not have to worry about e-way bill generation at all. We’ve built our system to automate a portion of the documentation, so you can save time and minimize mistakes.
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Training and Support:
There is no better way to comply other than education. That is the reason why CaptainBiz furnishes training, meeting and sweetening service to you and your team to make sure you understand how to generate e-way bills for your business and other GST concerns so that you can take charge independently.
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Stay Compliant:
Using our solutions you can be very confident that you are fully compliant with all the legal provisions. We give notification and information on almost any shift in regulation, so your company stays out of legal trouble.
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Enhanced Efficiency:
Enhanced fulfillment e-way bill The features for e way bill management services we offer include, Comprehensive e-way bill management Convenient tracking of generated/updated/ rejected e way bills Simplified e-way bill compliance reduce logistics complexity CaptainBiz will help your products to cross state borders faster and safer.
Also Read: What are the Benefits Of Using an e-way Bill?
How CaptainBiz Can Help
At CaptainBiz, we know how using GST and handling the e-way bills in the supply chain can be nerve-wracking. In our extensive services, we further offer tips and strategies on how best to produce e-way bills appropriately for the continuous running of your organization legally.
Key points related to E Way Bill
| Point | Details |
| Purpose | Track goods movement and ensure tax compliance. |
| Threshold Limit | Required for goods over ₹50,000. |
| Validity Period | Varies by distance; usually 1 day for every 100 km. |
| Who Generates | Supplier or authorized transporter. |
| Form | Generated in Form GST EWB-01. |
Changes in GST E-Way Bill Rules
The Goods and Services Tax Network (GSTN) has announced three significant modifications to the GST portal that will affect the businesses of buyers, sellers, and transporters alike. All of these modifications go into effect on January 1, 2025.
According to experts, e-waybill-related adjustments have become critical steps in GST filing because failure to comply may result in losses for both customers, sellers, and transporters.
Multifactor authentication (MFA)
According to the GSTN advice, one of the significant improvements is the installation of multi-factor authentication (MFA).
“Currently, MFA, which requires login using a username, password, and OTP (sent to the registered mobile number, Sandes app, or similar platforms), is mandatory for taxpayers with an Annual Aggregate Turnover (AATO) greater than Rs 100 crore since August 20, 2023, and optional for those with AATO greater than Rs 20 crore as September 11, 2023.
- a) Beginning January 1, 2025, MFA will be mandatory for taxpayers with AATO greater than Rs 20 crore, followed by those with AATO greater than Rs 5 crore on February 1, 2025, and all other taxpayers and users beginning April 1, 2025.
- b) Taxpayers are encouraged to activate and begin utilizing MFA immediately, with clear instructions accessible on the E-Invoice and E-Way Bill websites. It is recommended that you update the registered cellphone number with your GSTIN.”
Limitation on the duration of e-waybill generation from the date of the base document.
According to the GSTN advice, E-Way Bills will only be generated for papers that are less than 180 days old. “For instance, documents dated earlier than July 5, 2024, will not be eligible for e-waybill generation starting January 1, 2025.”
Restriction on extending the time of already generated e-waybill.
GSTN stated that “the extension of E-Way Bills will be limited to 360 days from their original date of generation.” For example, an E-Way Bill generated on January 1, 2025, can only be extended until December 25, 2025.
Taxpayers are asked to familiarize themselves with these developments and make the required changes to their compliance processes. For more information, please visit the respective websites.”
How does the e-waybill system relate to the buyer’s input tax credit and the seller’s output tax liability?
Chartered accountant Bimal Jain, founder of A2Z Taxcorp LLP, explains how the buyer’s input tax credit is linked to the seller’s output tax liability:
“In the first phase, the seller generates an e-invoice. The vendor will then arrange for mechanised transportation of the products after generating an e-waybill. Once the seller has prepared and posted the invoice to the invoice management system (IMS), the buyer can accept, reject, or keep it pending.
If the buyer accepts the invoice, he is entitled to the input tax credit (ITC) for his purchase. When the customer accepts the invoice, the seller’s output tax due is appropriately calculated.
The e-waybill method is an important aspect of this since it confirms that the products were truly transported and delivered to the buyer, and that this was not a paper transaction. The e-waybill is a technique for ensuring the genuine transportation of goods.
In GST, tax is paid on an accrual basis, therefore it makes no difference whether the buyer receives the products or when he pays the supplier. GST liability payment must be made for the month in which the invoice was created.”
Impact of these modifications on the GST portal for taxpayers
The impact on buyers, sellers, and transporters is summarized below:
For the buyers:
According to Chartered Accountant Ashish Karundia, buyers can claim input tax credit (ITC) if they have the e-invoice or tax invoice issued by the seller, receive the goods, qualify for ITC, declare the supply details in the supplier’s GST return, and pay the tax to the government.
For Sellers:
It fosters better compliance by clarifying GST rules, eliminating filing errors, and assuring timely adherence to tax laws. This can also assist GST-registered sellers avoid penalties and increase transparency.
However, there are also negatives. For example, these complex advisory may increase the compliance cost, particularly for small enterprises. Adapting to new requirements frequently involves additional costs, such as software upgrades or expert services. Furthermore, short implementation timelines can make it difficult for taxpayers to comply quickly.
Conclusion
In today’s fast-paced business environment, staying compliant with GST regulations and managing e-way bills efficiently is crucial for success. At CaptainBiz, we are committed to providing you with the tools, resources, and support needed to navigate these challenges with ease. Our expertise not only ensures that your business remains compliant but also enhances operational efficiency, allowing you to focus on growth and innovation.
Join the CaptainBiz family and experience the difference that a dedicated partner can make in your business journey. Together, we can simplify compliance, streamline processes, and unlock new opportunities for success. With CaptainBiz by your side, you’re not just compliant, you’re empowered.
Also Read: CaptainBiz Launches Unlimited e-Invoices and e-Way Bills on Mobile App
FAQs
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What is an e-way bill?
An e-way bill is an electronic document created on the GST portal for the interstate transportation of goods which are costing more than ₹50,000. They are useful to ascertain shipment and contain the relevant information of the consignment.
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What is the significance of the e-way bill for the companies?
The e-way bill helps in safe transportation of the goods, in addition to increasing compliance levels in GST laws and ensures real time tracking of the movement further avoiding congestion and penalties.
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How can I issue an e-way bill?
When a registered person wants an e-way bill to be created, he goes into the GST portal, enters necessary details like invoice number and value of goods and uploads it. A new number, known as the E-Way Bill Number (EBN), will be provided.
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What if I do not produce an e-way bill?
Any failure in generating an e-way bill when deemed necessary would attract penalties that equal the amount of tax on the goods and or confiscation of the goods by the authorities.
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In what manner can an e-way bill be managed using CaptainBiz?
CaptainBiz also provides essential services of advisory, creation of easy and effective interface for creating e-way bills for your small business, training sessions and continuous support services so that you or your Small Business should not be found non-compliant.
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Does it cost me anything to use the services provided by CaptainBiz for e-way bills?
Nevertheless, CaptainBiz in its current form provides certain service packages, which may also imply charges for generating and supporting e-way bills, as well as for extra services. For individual prices, please consult us.
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How long can an e-way bill be valid?
The validity of an e-way bill depends on the distance traveled: It is valid for one day every one hundred kilometres. It can also be established and maintained when required In far reaching extenuation, it might require renewal.
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Once an e-way bill has been generated can it be changed or canceled?
Yes, amendments can be made to some of the fields of the e-way bill before the transportation of goods. However, where they are in transit, changes are often not allowed, especially where the parties have included in their sales agreement the provision of this commercial condition.
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What happens if you enter wrong information in an e-way bill?
It’s wrong information leads to compliance issues, fines and demurrages in transportation of goods. Accuracy of all details must be checked before coming up with a bill is essential.
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What can one do to know all the recent changes on the GST regulations and e-way bill?
There are always new changes or updates for GST and e-way bill, and with CaptainBiz you receive timely notifications of such changes.
