The GST Council introduced electronic invoicing or e-invoicing, which is being implemented gradually in different phases. As a result, the current GST system has undergone a few modifications to streamline and lessen the taxpayers’ compliance burden. According to the most recent update, companies with a turnover of more than Rs. 5 crore must generate GST e-invoices. In this post, we will discuss the changes and impacts on the e-way billing framework following the adoption of e-invoicing.
What is an e-Way Bill?
The government has made it mandatory for anyone in charge of a conveyance carrying goods worth more than Rs. 50,000 to carry an e-way bill. When individuals or transporters initiate the movement of consignment items, they must generate an eWay bill on the GST Common Portal.
Changes in the e-Way Bill System after e-Invoicing
An e-way bill is divided into two sections: Part A & Part B. Part A contains the invoice number, HSN codes, delivery address, and the GSTIN of both parties, while Part B contains the transporter’s information, vehicle number and other details. In the existing e-way bill system, the taxpayer must manually complete both sections on the e-way Bill site.
Post-implementation of e-invoicing, Part A of the e-way bill is auto-populated with the information available on the GST e-invoice. Taxpayers need to enter only transporter details (Part B). With this, manual errors will be decreased, and the generated e-way bills will be more accurate.
Impact of e-Way Bill Integration with e-Invoicing on Businesses
The objective of the integration of the e-invoicing system is to streamline and automate the e-way bill process. In addition, the government has linked e-way bills and GST returns filing. If a taxpayer has two or more consecutive unfiled GST returns, their ability to generate e-way bills will be prohibited. The government would benefit from it as it would ensure lesser tax avoidance.
Those who often create e-way bills will undoubtedly notice significant changes due to the required application of e-invoicing regulations. Several adjustments and alterations have been made in conjunction with integrating e-invoice with EWBs to provide a more seamless process for you and the government.
Does an e-way Bill need to be sent with the e-invoice?
As per the current regulations in India, an e-way bill is not required to be physically sent with the GST e-invoice. However, the e-way bill needs to be carried by the person-in-charge of the conveyance carrying the goods. It must be available digitally (via the e-way bill number) for verification when required by the authorities during transit.
How many days after the invoice date is an e-way bill generated?
An e-way bill should ideally be generated before the movement of goods. For distances less than 100 km, it should be generated before the goods’ dispatch. For distances exceeding 100 km, it’s best to generate the e-way bill before the goods start their journey. Ensuring the e-way bill is generated promptly after the invoice date helps comply with GST regulations and facilitates seamless transportation of goods.
Will the ability to generate e-way bills normally be permitted in addition to those generated via IRP?
Yes, the existing facility to generate e-way bills on the e-way bill portal or the common GST portal remains active until further notification by the GSTN.
Will the IRN and EWB systems currently function independently?
Yes, at this time, both systems are functioning independently.