The e-way bill system allows for real-time tracking of goods by installing Radio Frequency Identification (RFID) tags or devices on the transport vehicles. Such monitoring significantly helps government authorities as it ensures strict compliance and reduces tax evasion.
But, what about the businesses? Are there real benefits offered by the e-way bill system to sellers and transporters? Let’s find out.
No more checkpoint verifications and delays
Before the e-way bill system was introduced in India, transporters used to rely on state-wise permits and documents. They were individually verified on every checkpoint which led to long delays.
But now, with the e-way bill system, the entire documentation process has been digitised. This has minimised manual inspections at checkpoints as no physical document verification is undertaken. With the electronic system, authorities can now access data instantly.
This has also led to a reduction in waiting times and benefited businesses in terms of lower costs and improved customer satisfaction.
Less paperwork and administration costs
Earlier, for each shipment, transporters carried:
- Physical invoices
- Forms
- Transport permits
This led to excessive paperwork and frequent errors. Each state also required its own specific documentation, which added to the complexity.
Now, with the e-way bill system, all required data is uploaded online and stored electronically. Transporters only need to show a digital or printed e-way bill. It contains all shipment details in a single document. This helps businesses by:
- Eliminating repetitive paperwork
- Reducing clerical errors
- Lowering administration costs
Such a feature significantly reduces the administrative burden of high-frequency sellers active on online marketplaces or physical stores.
Follow rules and stay compliant
As per Section 60 of the GST Act, you must generate e-way bills if the value of transported goods is more than Rs. 50,000. By timely generating e-way bills in the prescribed EWB-01 format, you can stay compliant with GST regulations.
Failure to do so can attract fines of up to Rs. 10,000 or an amount equal to the tax value. Additionally, non-compliance can also result in the seizure of goods or vehicles. This causes financial losses and even legal challenges.
Easily file GST returns
E-way bills are directly connected to GST returns. When you create an e-way bill, several details are automatically saved in the GST system, such as:
- Invoice number
- Value of the transported goods
- HSN code
- Tax Amount
Due to such automation, you are not required to enter the same details again while filing GST returns. This reduces errors and saves time. Also, such an integration ensures that your transport records match your tax records, so there are no mistakes or penalties.
Moreover, when applying for loans, banks and NBFCs assess your GST compliance. A clean record without GST scrutiny cases lowers the risk for lenders and allows you to obtain business loans at favourable terms.
How to generate e-way bills
An e-way bill can be easily generated using the online EWB web portal – www.ewaybillgst.gov.in. Simply follow these steps:
- Log in to the EWB web portal using your GST credentials.
- Enter details of the sender (consigner), receiver (consignee), and the goods being transported.
- Add transport details, such as the vehicle number or transporter ID.
- Submit the information to generate the e-way bill.
Once all the details are entered and submitted, the system generates an e-way will with a unique e-way bill number (EBN). You can use this number for tracking purposes.
Conclusion
The e-way bill system offers significant benefits for businesses. It reduces paperwork and minimises delays at checkpoints. Also, the e-way bills are directly connected with the GST portal. Such an integration saves time and avoids errors while filing GST returns.
In this way, the e-way bill system ensures smooth movement of goods and also supports business growth by improving their efficiency.
