27 Mar 2019Posted By: Mudit Handa


4 New Changes to be introduced in the E-Way Bill Portal

The GST department has so far brought a number of changes in the E-Way Bill system so as to rule out all unwanted hindrances and to smoothen the procedure of E-Way Bill generation. Recently, 6 new changes were implemented in the E-Way Bill portal for the convenience of the vendors having GST registration.

Those amendments were made to avoid the duplication of E-way Bills and for the treatment of the supplies in case of export-import trade.

Once again, the GST authority is going to make 4 new amendments in the E-way Bill Portal.

It has been announced that the forthcoming changes in E-way Bill (EWB) System will be related to-

  • Automatic calculation of the route distance, which will be based on the ZIP code for E-Way Bill generation.
  • Blocking of multiple E-Way Bills generation with one Invoice, which means duplicate E-Way Bills generation.
  • Blocking Interstate Transactions by dealers having GST registration in Composition scheme
  • Extension of validity of E-Way Bill in case of Consignment in Transit.

 

Now we shall discuss all of these in detail.

 

#1. How will the Auto calculation of route distance be done?

The E-Way Bill system is being modified to compute automatically the actual distance between the source & destination of the goods in transit.

  • The auto-calculation of the distance will be based on the ZIP codes of the place of origin and destination of the supplies. This means that the E-Way Bill system will now calculate and display the actual distance between the addresses of the consignor and consignee having GST registration.
  • Under the new system, the supplier will be allowed to quote actual distance on the basis of the movement of his goods.
  • However, he can enter the actual distance maximum of up to 10% more than the distance displayed by the E-Way Bill system. For instance, the E-Way Bill system has shown the distance between A & B, based on their ZIP codes, as 500km. Now, the supplier having GST registration can enter the actual distance up to 550km (500 + 50)km.
  • If the ZIP code of the origin & destination of supplies is the same, the supplier shall be able to enter maximum distance up to 100km.
  • If the ZIP code entered is found incorrect, the E-Way Bill system would give the warning as “INVALID PIN CODE”. In such a case, the user can re-enter the distance. The E-Way Bills having INVALID PIN codes shall be flagged for further review by the GST department.
  • The calculation of total route distance between origin & destination will be done from various electronic sources.
  • This includes various aspects such as road class, the direction of the route, average speed, traffic-data etc. Such data is gathered from the traffic on National highways, state highways, expressways, district highways and main roads in the city.
  • The distance between 2 ZIP codes will be then estimated with a Uniform method. This will be displayed as the motorable distance at that time.

 

#2. How duplicate E-Way Bill generation will be avoided?

Noticing the problem of multiple E-Way Bill generation through one invoice, the government has now decided not to allow the generation of multiple e-way bills based on one invoice.

  • The government shall now follow “One Invoice, One E-way Bill” policy.
  • Henceforth, once the E-way Bill has been generated with an invoice number, then none of the 3 parties – the consignor, consignee or transporter will be able to generate another E-Way Bill with the same GST invoice number.  

 

#3. What will be the method to extend E-Way Bill if Consignment is in Transit?

It has been noticed that transportation of goods takes more time than expected. The transporters have expressed their concerns regarding including a provision to extend the E-way Bill validity if the goods are in transit.

  • Very importantly, here ‘goods in transit’ means that goods could be on the way or at Warehouse. This new facility shall be introduced in the next E-waybill version.
  • However, while the extension of E-Way Bill, the user will have to answer whether his Consignment is ‘in Transit’ or ‘in Movement’.
  • In the case of goods in Transit, the address of the destination has to be provided. In the case of goods in Movement, current place & vehicle details shall be provided, from where the E-Way Bill has to be extended. In both cases, the ZIP of the destination will be taken from the PART-A of the E-way Bill.

Thereafter, the Route distance shall be calculated and on that basis, the E-way Bill will be extended.

 

#4. Why & How shall Interstate Transactions of Composition dealers be blocked?

The taxpayers having GST registration in composition scheme are not required to carry out Interstate outward supplies as per the provisions of section 10(2)(c) of CGST Act 2017.

  • Henceforth, the composition taxpayers shall not be allowed generation of the E-Way Bill for interstate movement in the next version.
  • Besides, the supplies of composition dealers shall not be subject to enter any amount under CGST or SGST head,  for the intrastate transaction.
  • The dealers having GST registration in composition scheme are not allowed to raise tax invoice. They are only allowed to raise Bill of Supply. Hence, in the case of Composition taxpayer, Tax Invoice in document type shall not be enabled.

Taxpayers can easily create E-Way Bill on InstaBill Software.

instabill

These are the 4 key changes that will be made soon in the E-Way Bill Portal.

Also, read the  .

In case you have any query regarding Online GST registration procedure, feel free to contact us at 8881-069-069.

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