What is an E-Way Bill, how to generate an E-Way Bill?
What is an E -Way Bill?
An E- Way Bill is an electronically generated document with a unique number allotted to a specific shipment from a vendor whose shipment value is more than 50,000 INR. We should generate e way bill before the shipment starts its journey from the source, this is made mandatory by the government & is going to be implemented from the 1st of February, 2018. The generated document needs to be carried by the person in charge of the shipment for checking and verifications purpose during the transportation.
The key benefit is that the Cross verification of bills will be easy due to single format across India unlike earlier, where each state government prescribed its own format. This would ensure
1) Keeping the tax department informed and acknowledgment number obtainment for shipping of the goods,
2) Mutual acceptance from both the consignor and the consignee, for the shipment, to be shipped.
3) That the shipment in-charge carries the invoice or bill along with the allocated E- Way Bill number.
Basic and mandatory fields in the E-Way Bill contain:
1.) GSTIN of the recipient,
2.) Place of delivery,
3.) Invoice Number,
5.) Invoice date,
6.) Value of goods,
7.) HSN number,
8.) Purpose of Transport,
9.) Vehicle Number, etc.
In case the shipment commences without E Way Bill, then the consignor can be slapped a penalty of Rs 10,000 apart from the risk of detention of the goods-in-transit.
Why E-Way Bill?
§ Single E- Way Bill for movement of the goods across the country,
§ To prevent evasion of Tax,
§ Hassle Free movement of goods,
§ Tracking the movement of goods with e-way number,
§ Easier verification as only one format is followed across the country.
§ The traders need not visit tax offices to collect and submit the Way Bill forms as used to be done in VAT regimes in some states.
§ Average waiting time at mobile squad reduces drastically – As the verification of the e-Way Bill is done with the common portal, it will speed up the process of verification and allowing the vehicle to pass faster.
§ Self-policing by traders. A trader while uploading gives the identification of the buying trader who will also account the transaction automatically.
§ Generation of GSTR-1 returns – GSTR-1 return of the supplier is auto prepared, hence he need not have to upload the same.
§ Officials saved of monotonous work collecting and matching the manual way bill with the returns of the taxpayers.
How to generate an E- Way Bill?
Four major people involved in the movement of a shipment are suppliers, recipients, transporters and tax officers. The 1st three are involved only to make sure their shipment reaches from source A to destination B without any hurdles or problems. Tax officers are responsible for the accounting of the shipment to government bodies. For this to be achieved everyone need to have their login credentials from which they can access the information regarding the particular shipment.
Everyone who is involved in the shipment procurement needs to have their GSTIN number to enroll in E- Way Bill system.
We can generate e way bills in two different ways:
Either using the web or using the SMS.
People who do not have access to the internet/ website can avail this SMS option where they can simply send out an SMS from the registered mobile number to generate E Way Bill.
Using the Web:
The government provided an E- Way Billing portal to the citizens to generate e Way Bill o their own. Multiple mandatory fields to be filled by the bill generator is proving a great disadvantage for the portal as few opinioned. Owing to this fact bulk processing of bills is not favored, and people are looking for better-automated solutions which can dedicatedly fill the void that has been created. This is exactly where enTransact offered by Udyog Software will off load your compliance burden.
enTransact offers you most simple and easy ways to generate E-Way Bills with reconciliation option.
Advantages of enTransact:
1.) Integration with standard ERP systems for real time synchronization with NIC E Way bill API,
2.) Generate e way bills in bulk and option to enter manually,
3.) Workflow to collaborate with transporters and consignees,
4.) Real tracking of shipment status across the country,
5.) Perpetual storage of invoices and e-way bills,
6.) Automatic identification of tax rates & HSN codes for respective goods,
7.) Generate e way bills in a consolidated way,
8.) Onboarding consignee & the transporter,
9.) Electronic E- Invoicing.