Did you know that you have to issue a permit for transporting goods in India?
The E-way bill system came into effect from 1st April 2018 for inter-state and intra-state transportation of goods. It is a document under the GST regime that needs to be issued before shipping any goods, worth more than INR 50,000.
The bill is generated electronically via the online portal. Its purpose is to ensure that any goods transported, comply with the GST laws stated by the government. Moreover, it is an effective tool to track the movement of goods and check tax evasions.
Who Can Generate E-Way Bill?
The bill is required to be carried by a person who is in charge of the conveyance, carrying the consignment of goods. A business owner or a logistic service provider needs to ensure that their vehicles are equipped with the bill during the move.
The bill can be generated by a registered or an unregistered person, a transporter or unregistered transporters who have to provide a transporter ID on registration on the portal. It generates a unique e-Way Bill Number (EBN) which is made available to the supplier, recipient and the transporter.
What’s The Difference Between A Waybill and an E-Way bill?
The E-Way bill is not a new thing in the industry. Earlier, they were issued physically, subjected to state-specific rules and had to be generated through different state specific portals. The e-way bill now replaces the Waybill that existed during the VAT regime for the movement of goods.
The electronically generated documents make it easy for everyone to issue and track everything within a finger touch. The process is governed by a set of rules that are applicable throughout the country.
Since it is an online process, the bill faced many practical and technical difficulties at the beginning. It led to unwanted harassment for businesses in the process of rectification of the bill. There were a number of cases of the e-way bill being used as a tool for harassment. In the beginning, there were cases such as the seizing of goods, impounding of vehicles and imposition of penalties. This happened even though everything was cleared from the transporter’s end.
However, the GST Council in Dec 2019 changed the validity of E-way bill to 1 day per 200kms instead of 100kms which was earlier permitted. This change has not been welcomed by many transporters of the country. The new rule had made it impossible to absorb any delay in the process, thus making it worse for the transporters.
Impact Of E-Way Bill On Logistic Industry
Though the new rule has been upsetting for many, one cannot overrule the advantages it offers. The E-way bill provides multiple benefits for businesses opting for logistic services for transportation of goods and services. Let’s take a look at them.
Processing things online saves a lot of physical documentation. You don’t need to carry physical copies every time during conveyance. Your device is connected to the vehicle, and the bill can be mapped and verified online.
Quicker movements and deliveries
Another major advantage of e-way billing is the removal of a large number of check-posts verification. Everything is just a touch away, and you do not need to wait for the verification.
Reduces logistic costs
E-way bill reinforces proper invoicing and also reduces tax avoidance. Moreover, the bill is expected to reduce the logistic cost in the longer run.
E-way billing is a futuristic step to take everything online for people’s convenience. Why sweat, when everything is available with just a single click.
If you’re interested in hiring logistic services for your business, connect with us. We at Mega provide you with 24/7 services, updating you via mails, SMS and our Mega App.
For any further queries, get in touch with us.