e-Way bill is a critical component in India’s Goods and Services Tax (GST). It is a document that has to be created for the transportation of goods of a particular value from one place to another. This system is intended to prevent tax fraud, as well as to allow for proper documentation and tracing of the movement of goods. But creating an e-Way bill is not always as simple as one would think.
A few wrong things in the e-Way bill can result in fines and unwanted hiccups when on the move. This blog will take you through the errors businesses commit while generating e-Way bills and how to avoid them:
Entering the wrong document details
Mistyping information (invoice number, date, value) is one of the biggest mistakes made. If the information in the e-Way bill does not match the information in the original invoice or the details mentioned in your GST returns, you may face trouble during inspections.
How to avoid it:
Never, ever submit without re-reading the document. An accidental typo in the invoice number or amount can also result in problems. Be accustomed to reconciling e-Way bill data with the records in your invoice and GST returns before you proceed.
Incorrect HSN codes
The HSN code will help identify the items being transported. Wrong or incomplete HSN code can lead to erroneous tax calculation and the rejection of the e-Way bill.
How to avoid it:
Keep an updated list of proper HSN codes for each product you are dealing with. This will help to guarantee the accuracy of each submission.
Invalid transporter ID or vehicle number
Entering an incorrect transporter ID or vehicle number is one of the most frequent e-way billing mistakes. This information is essential to monitor the carriage of goods. If any discrepancy is discovered, the e-Way bill is treated as invalid.
How to avoid it:
Check the transport ID and vehicle number whenever you create an e-Way Bill. If you regularly use third-party transporters, keep a verified list of their details.
Choosing the wrong document type
If an invoice is used where a delivery challan is required or the other way around, it can result in the e-Way bill being rejected. Every kind of goods movement requires a different document, and using the wrong one can be confusing.
How to avoid it:
Understand the purpose behind the goods movement and select the right document type accordingly. If it’s a sale, choose an appropriate invoice template. For stock transfers, use a delivery challan.
Generating e-Way bills for exempted goods
Certain goods are exempt from the e-Way bill requirement. Generating bills for them not only creates unnecessary paperwork but also causes confusion.
How to avoid it:
Stay up-to-date with the list of exempted goods published on the GST portal. Keep a printed or digital checklist nearby for reference when preparing documents.
Ignoring updates in Part B
Part B of the e-Way bill contains critical vehicle details. Leaving this part blank or outdated renders the document invalid.
How to avoid it:
Make it standard practice to fill or update Part B before dispatch. If you’re unsure of the vehicle number at the time of generation, ensure you edit the e-Way bill once the details are known, before the goods are in motion.
Delay in cancellation or extension
If goods don’t move or get delayed, you must cancel or extend the e-Way bill within the stipulated time. Failing to do this may lead to complications during checks.
How to avoid it:
Use reminder systems or assign a team member to monitor shipments and update or cancel e-Way bills on time.
Final thoughts
The smallest error in e-Way billing can cause havoc in your supply chain management. Some errors may be more expensive than others. Keep yourself updated and always cross-verify the details. Remember, in e-Way bills, even a small error can cost a considerable amount.
