Importance of the E-Way bill and how to reap its benefits!
The E-way bill is an electronically generated document needed for transportation of consignments from one place to another under the GST regime in India. Compared to the old way bill system during the VAT era, the E-Way bill system is much more efficient in terms of checking tax evasion and reducing the time of transportation of goods. Based on technology the system is regularly updated and is intended to provide a better service to the tax payers. There are multiple benefits of the E-way bill system and therefore it is very important to comprehend the entire system while taking advantage of it.
Some important information about the E-way bill:
Any consignor or consignee undertaking movement of goods needs to generate and carry the E-way bill. The bill can be only generated by registered persons and any unregistered individual must enroll in the common portal to generate the E-Way bill.
Also Read: Is Tubemate is worth to use?
It is also important to know that the E-way bill is mandatory for all the goods that are to be transported unless exempted by a government notification. There is also a validity period – 1 day validity for every 100 km for regular vehicle mode and 1day for every 20 KM for Over Dimensional Cargo Vehicles.
There are also several perquisites to generate E-way bill. For instance registration in the GST portal and the E-way bill portal is compulsory and documents like tax invoice, delivery challan, transporter’s ID, vehicle number is necessary.
How is the E-Way bill beneficial?
The benefits of the E-way bill system include less time for goods transportation and flexible logistics. Moreover, the system is win-win for both the traders and the government as it not only checks tax evasion but also lets the transporters to save precious time. The various check posts which previously existed under the VAT era created bottlenecks and slowed down the entire transportation network. However, under the new E-way bill system such check posts are no longer necessary. The transporters are also no longer required to visit the tax office to seek blank delivery notes. Moreover, the GSTR-1 return of the supplier is auto prepared which saves him a lot of time and hassle.
Also Read: Top Benefits of HR Certifications You Should Know
Challenges of the E-Way bill and how to negotiate through it!
Along with the benefits the E-way bill also has many problems. For instance, there is no provision for inadvertent errors as a wrong entry in the bill cannot be edited or corrected. Given the importance of the bill, it is thus extremely important to generate it accurately. Extension of the validity or generating E-way bills in bulk also requires special attention. Thanks to a number of software platforms available in the market the entire process can be negotiated easily and error-free. A good software platform will provide multiple solutions like- data validation, timely alerts and automatic distance calculator. Therefore, one can easily use a good software system to generate E-way bill.