e-Way Bill System: The e-way bill system is extremely beneficial for businesses as it reduces paperwork and delays at checkpoints. Moreover, e-way bills are directly linked to the GST portal. Such integration saves time and avoids mistakes while filing GST returns.
e-Way Bill System: The e-way bill system involves affixing radio frequency identification (RFID) tags or devices on vehicles, allowing tracking of the movement of goods at all times. Such monitoring is extremely helpful for government authorities as it ensures strict compliance and reduces tax evasion.
But how is it beneficial for businesses? Does the e-way bill system really benefit sellers and transporters? Let’s find out.
No hassle of verification and delays at checkpoints
Before the introduction of the e-way bill system in India, transporters had to rely on permits and documents from different states. They were verified separately at each checkpoint, which caused a lot of delays in the movement of goods.
But now with the introduction of the e-way bill system, the entire paperwork has been digitised. This has reduced manual checking at checkpoints as original documents are no longer verified repeatedly. Officials can now access data instantly with the help of electronic systems.
This has reduced waiting time, while businesses have also benefited from reduced costs and improved customer satisfaction.
Reduced paperwork and administrative costs
Until now, transporters had to carry the following documents for every shipment:
● Original invoices
● Different types of forms
● Transport permits
This led to a lot of paperwork, which was often prone to errors. Each state required different types of documents, which further complicated the problem.
Now, with the e-way bill system, all the required data is uploaded online and stored electronically. Transporters only need to produce a digital or printed e-way bill that contains all the details of the shipment in a single document. This helps businesses in the following ways:
● Eliminates Repetitive Paperwork
● Reduces Typographical Errors
● Reduces Administrative Costs
This facility significantly reduces the administrative burden for those who sell high volumes regularly on online marketplaces or physical stores.
Follow the rules and act accordingly
As per Section 60 of the GST Act, you must generate an e-way bill if the value of the goods being transported exceeds Rs 50,000. This means that to comply with GST rules, it is important to generate an e-way bill on time in the prescribed EWB-01 format.
Failure to do so can result in a fine of up to Rs 10,000 or the amount of tax. Apart from this, goods or vehicles can also be confiscated for not following the rules. This not only causes financial loss, but also leads to legal complications.
Ease in filing GST returns
E-way bills are directly linked to GST returns. While generating an e-way bill, many details are automatically saved in the GST system, such as:
● Invoice number
● Value of goods being transported
● HSN code
● Tax amount
Due to such automation, you do not need to fill the same information again while filing GST returns. This reduces errors and saves time. Also, due to such integration, your transport records match your tax related ones, so there is no scope for any error or penalty.
Also, when applying for a loan, banks and NBFCs look at whether you have complied with GST rules or not. A clean record without any GST-related issues reduces the risk for lending institutions and lets you get a business loan on favourable terms.
How to generate e-way bill
E-way bill can be generated easily through the online EWB web portal – www.ewaybillgst.gov.in. Just follow the steps given below:
● Login to the EWB web-portal using your GST credentials.
● Fill in the details of the consignor, consignee and the goods being transported.
● Fill in the transport related details, such as vehicle number or transporter ID.
● Submit the details to generate the e-way bill.
After filling in all the details and submitting them, the system generates an e-way bill with a unique e-way bill number (EBN). You can use this number for tracking.
Conclusion
The e-way bill system is extremely beneficial for businesses. It reduces paperwork and delays at checkpoints. Moreover, e-way bills are directly linked to the GST portal. Such integration saves time and avoids errors while filing GST returns.
In this way, the e-way bill system makes the movement of goods easier, while also contributing to the growth of businesses by increasing their efficiency.
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