E-Way Bill Common Errors can be like potholes on the road to seamless goods transportation in the era of GST. These simple mistakes, if overlooked, can lead to disruptions and delays in your business. Let’s unravel these everyday common errors wrt E-Way Bill.
GST E-Way Bill Common Errors: A Detailed Guide
Generating E-Way bills is an integral part of the GST compliance process in India, streamlining the movement of goods. Having said that, the E-Way Bill is required to be issued if the value of the goods to be moved exceed Rs. 50,000. It is an online tool that helps in tracking the movement of goods. However, in the intricate web of regulations, businesses often encounter the following common errors:
Also Read | GST E-Way Bill [Ultimate Guide]
Giving Erroneous Records/Details
Giving erroneous records/details is the first and the most common error wrt the generation of the E-Way Bill. And, these errors could be incorrect or missing details such as consignor name, consignee name, address, GSTIN, etc. Therefore, it is essential to verify the details before the generation of the e-way bill. Further, while generating E-Way Bill, the user must ensure to attach all the necessary documents. In case the details are incorrect, the authorities can seize the goods as well as levy a heavy penalty.
Incorrect Company information
While generating E-Way Bill, the businesses tend to provide incorrect details. This happens usually in cases wherein the business has registration under the different name on the E-Way Bill. Further, this error also happens wherein the business has multiple GSTIN/address/contact details/invoice number and they mention the wrong one during the E-Way Bill generation. Having said that, providing incorrect information can lead to delays and penalties as well as seizure of goods. Therefore, make sure to double check the details before generating the E-Way Bill.
Generation of E-Way Bill by Third Party
To run a business, there can be cases wherein a third party issues the e-way bills in place of the actual supplier or the transporter of goods. And, in these cases, the third party has a tendency to forget to include their own GSTIN. As a result of which, the actual supplier or transporter of goods may face challenges in reconciliation of the data on the E-Way Bill with their own records. Such discrepancies can again lead to delays, penalties as well as seizure of goods.
E-way Bill Generation Using Incorrect User IDs
The user ID is a unique identifier provided to the individual or entity generating the E-Way Bill. If there’s use of an incorrect user ID, it may lead to discrepancies in the data, making it challenging to track the movement of goods. It can also result in delays and penalties due to the mismatch in the information. Hence, it is crucial to ensure that there is correct use of user ID while generating e-way bills to avoid any such issues. It is advisable to double-check the user ID before initiating the e-way bill generation process to avoid any errors. It is frequently discovered that taxpayers create electronic way bills with a different ID for each entry they make. The IDs are frequently used interchangeably by one user who creates e-way bills for various entities. This method of bill generation results in incorrect GSTINs on the bills. In order to prevent recording errors, it is crucial to use consistent user IDs.
Non-Proper Use of the Bulk Generation Facility
The users can now generate bulk E-Way Bills and made the system more effective as well as convenient to the users. The taxpayers can now generate multiple e-way bills simultaneously and upload numerous invoices at the same time.
Having said this, to use this facility, the user has to follow a certain procedure. The user must create the request using an excel file that supports JSON. The file generates GST E-Way Bills once it becomes live on the portal.
However, many users face struggles. And, in order to overcome these struggles, they ultimately resort to pre-existing template. By doing so, they do not make any significant changes in the sheet. Accordingly, by submitting the sheet, the user is at risk of creating erroneous E-Way Bills as well as future records. Improper use of the bulk generation facility, such as generating e-way bills for goods that are not actually being transported or generating e-way bills with incorrect details, can lead to serious consequences. It can result in penalties, legal action, and damage to the reputation of the business.
Therefore, it is essential to use the bulk generation facility only for legitimate transactions and ensure that all the details entered are accurate and truthful.
Also Read | Can you claim GST ITC on Travel?
Not Furnishing a Transporter ID
The transporter ID is a unique identification number that the government issues to the transporters. This transporter ID in the E-Way Bill helps in tracking the movement of goods and ensures compliance with GST laws.
Having said that, if there is no mention of transporter ID in the GST E-Way Bill, then it can result in rejection of the document. Furthermore, it can cause delays in the movement of goods and lead to additional costs to the business. In addition, non-compliance with e-way bill rules can result in penalties and legal action.
Note:
If you happen to transport your goods via third-party transporters, then also you have to mention this transporter ID.
Issuance of Single E-Way Bill Against Multiple Invoices
As per the GST Law, each invoice or challan is considered a separate consignment and accordingly, requires unique E-Way Bill against each invoice. It is not possible to create a single E-Way Bill for multiple invoices or challans. This means that even if there are multiple invoices with the same consignee, each invoice must have its own E-Way Bill. However, still many taxpayers or businesses often try to combine multiple invoices into a single E-Way Bill, which is not permissible by law.
Therefore, to avoid any issues or penalties, it is advisable that businesses create a separate e-way bill for each invoice or challan. This not only ensures compliance with GST regulations but also helps in better tracking of the consignment. Additionally, creating a separate e-way bill for each invoice can help in avoiding confusion or errors related to invoicing or billing.
Providing Vehicle Numbers in an Invalid Format
Not entering vehicle number in an incorrect format is yet another one of the most E-Way Bill common errors. The taxpayer has to provide the vehicle number in Part-B of the E-Way Bill. An invalid format of a vehicle number could mean incorrect digits, missing alphabets or numbers, or the wrong sequence of digits. And, the system will not function, if the mention of the number is not in the valid format. Further, the transporter may face hefty fines and penalties for such errors.
The valid format of mentioning vehicle number is as follows:
Inability to Track the Validity Period of E-Way Bills
Lastly, but the most important in the E-Way Bill common errors that the businesses face is inability to track the validity period of E-Way Bills. E-way bills have a limited validity period, and if they expire, the goods being transported can be stopped by authorities, leading to delays and even financial losses for businesses.
The validity of E-Way Bills is as follows:
| Type of conveyance | Distance | Validity of EWay BIll |
|---|---|---|
| For Over dimensional cargo | Less Than 20 Kms | 1 day |
| For Over dimensional cargo | For every additional 20 Kms or part thereof | Additional 1 day |
| Other than Over dimensional cargo | Less Than 200 Kms | 1 day |
| Other than Over dimensional cargo | For every additional 200 Kms or part thereof | Additional 1 day |
FAQs
If there is a mistake, incorrect or wrong entry in the E-Way bill, then there cannot be any edition or correction. Only option is cancellation of E-way bill and generate a new one with correct details.
E-Way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill. The E-Way bill can be cancelled within 24 hours from the time of generation.
Yes, the other party has an option to reject your E-Way Bill. They can do so till 72 hours from the time of generation of e-way Bill or till the time of delivery of goods, whichever is earlier
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