Under the e-way bill system, vehicles are installed on the radio frequency identification (RFID) tag or device, which makes it possible to keep an eye on the movement of goods at all times. Such monitoring helps government officials a lot, as it strictly follows the rules and reduces tax evasion.
But, how is it beneficial for business? Do vendors and transporters really get any benefit from the e-way bill system? Let’s learn about this.
Get rid of verification and hassle of late at checkpoint
Before the introduction of the e-way bill system in India, transporters had to depend on the permits and documents of different states. They were done separately at every checkpoint, due to which there was a lot of delay in the movement of goods.
But now after the arrival of the e-way bill system, the entire paperwork related to it has been digital. This has led to a decrease in the checkpoint manually at the checkpoint, as now the real documents are no longer verified. Now authorities can immediately access data with the help of electronic systems.
This has reduced the time to wait, as well as businesses have also benefited from cost reduction and better satisfaction of customers.
Paperwork and administrative cost reduction
Till now, transporters had to keep the following documents with every shipment:
● Real invoice
● Different types of forms
● Transport Permit
This led to a lot of paperwork, which often made mistakes. Each state needed different types of documents, causing the problem to become even more complicated.
Now, all the necessary data are uploaded online with the help of e-way bill system, which are stored in an electronic way. Transporters only need to show a digital or printed e-way bill. It contains all the information of shipment in a single document. This helps businesses in the following ways:
● Repeated paperwork is not required
● Writing mistakes are less
● Administrative cost decreases
Such facilities reduce the administrative burden of those who sell continuously on online marketplace or physical stores to a great extent.
Follow the rules and work accordingly
According to Section 60 of the GST Act, if the value of the goods transported is more than Rs 50,000, you will have to generate an e-way bill. This means that to follow the rules of GST, it is extremely important to generate e-way bill in the given EWB-01 format.
For not doing so, a fine can be imposed equal to Rs 10,000 or tax amount. In addition, goods or vehicles can also be confiscated if the rules are not followed. It not only causes economic losses, but also has to face legal complications.
Ease of filing GST returns
E-way bills are directly linked to GST returns. While generating e-way bills, many information in the GST system is automatically saved, such as:
● invoice number
● Price of goods being transported
● Tax amount
Due to the convenience of such automation, you do not need to recur the same information while filing GST returns. This reduces mistakes and saves time. Also, due to such integration, your transport records match your tax related, so there is no scope for any mistake or penalty.
In addition, when applying for a loan, banks and NBFCs notice whether you have followed the GST rules. Clean records reduce the risk for loans institutions without investigating cases related to GST and the facility to get a business loan on favorable terms.
How to generate e-way bill
Online EWB web portal – www.waybillgst.gov.in can easily generate e -way bill. For this, just follow the steps given below:
● Log-in on the EWB web-portal using your GST credentials.
● Fill the information about the sender, the receiver and the goods being transported.
● Fill transport information, such as the train number or transporter ID.
● Submit information to generate e-way bills.
After filling all the details, the system generates an e-way bill with a unique e-way bill number (EBN). You can use this number for trekking.
The e-way bill system is very beneficial for business. This reduces the paperwork and reduces the delay at the checkpoint. In addition, the e-way bills are directly connected to the GST portal. Such integration saves time and mistakes can be avoided when filing GST returns.
In this way, the e-way bill system makes the movement of goods easier, as well as contributes to its progress by increasing the capacity of business.