The implementation of e-way bill as a replacement for traditional way bill has taken a lot of transporters and business owners by surprise. Even if you are aware of the basics of the new system there can be some grey areas which can get you in some trouble or the other. It is important for businesses to grasp the functionality and applicability of e-way bills as fast as possible. If you are curious about the e-way bill and have some questions regarding it, this article is for you.
A brief introduction
I am assuming that you know this much but just for the record I would type in some basic information. The e-way bill is an electronically generated document which has to be carried by transporters while moving goods worth more than Rs 50,000. The threshold may differ in case of intra-state transportation. This bill records the details of the consignment, consignor and the consignee as well as the vehicle and even the distance to be travelled by the transporter. Not carrying the accurate e-way bill can draw a penalty of Rs 10,000 or the tax amount attempted to be evadedwhichever is higher.
- What happens if a vehicle carries multiple consignments, and each is worth less than the threshold amount but the net worth of the goods carried is well above it?
This question has bugged many a transporter in the past owing to some ambiguity in the statements of sub rule (1) and sub rule (7) of the GST law. Thankfully the council has resolved this issue. The answer is no. If a transporter carries 10 consignments each worth Rs 6000, he does not need to carry an e-way bill. However he should carry the delivery bills for each of the consignments.
- What if multiple vehicles are required to carry a single consignment?
This is another area of confusion. As per the initial guideline a complete invoice had to be produced for the entire consignment. Then separate delivery challans were to be produced for the goods in each conveyance. And for each delivery challan there had to be an e-way bill. A recent enhancement in the rules by the finance ministry, however has dictated that multiple e-way bills cannot be issued for one invoice. This has been done owing to some unlawful activities. So, one may say that this is a confusion yet to be resolved.
- Can you generate e-way bill from within your company’s ERP?
You most definitely can. There are privatized apps in the market that allow you to generate e-way bill from within your ERP. Software like these provide e-way bill solution by helping you streamline the process of e-way bill generation, modification and cancellation. It is wise to automate the whole affair by using an e-way bill software.
- Is E-way bill required for courier?
Yes, the courier agencies are part of the transport industry. Therefore couriers are not exempted from the e-way bill.
- How is the distance between the source and the destination calculated in case of multimodal transport?
According to a recent mandate regarding the e-way bills the distance between the source and the destination shall be auto calculated depending on the postal pin codes. The person generating the bill can extend the distance by 10%. In case of multi modal transport, that is when the mode of conveyance changes in transit, the total distance shall be taken into account.