Common E-Way Bill and E-invoicing Rules

The latest GST E-invoicing and E-way bill amendments have transformed how businesses track and manage goods. These changes help businesses comply better with the latest GST rules. While they have simplified the processes, they also bring in new restrictions that businesses must navigate.

For instance, the latest GST E-way bill amendments now require businesses to provide the vehicle number when generating the E-way bill. This ensures that the tax authorities efficiently track the vehicle transporting the goods. Here are some other restrictions in e-way bill and e-invoicing systems:

Restrictions in E-way bill system

Here are a few e-way bill restrictions as prescribed recently:

1. Applicability: Under the GST E-way bill rules, businesses must mandatorily generate an E-way bill for goods exceeding Rs. 50,000. It is regardless of whether the transportation is interstate or intrastate and done by seller, buyer or third party. Businesses must update the E-way bill for every change in vehicle, route or transporter.
   
2. Extension period: The transporter or consignor must request an extension of the E-way Bill with valid reasons, but only for goods that are still in transit. Also, you can only extend the E-way bill till 360 days of original generation.
   
3. Time–bound validity: The E-way bill validity expires after a set period. The validity depends on the distance between the point of origin and the destination. For every 100 km of travel, the E-way bill validity period is 1 day and in case of regular vehicles ODC, the validity period is 1 day for 20 km of travel.
   
4. Restriction of bill generation from the date of base document: E-Way Bills can only be generated for documents dated within 180 days from the generation date.
   
5. Accuracy of data: Incorrect or Incomplete details in the bill such as incorrect HSN codes, missing transport details or wrong invoice numbers will cause the rejection of E-way bill generation.
   
6. E-Way Bill Exemptions: The following items are subject to latest GST E-way bill Exemptions, even if the value exceeds threshold limit-
   
   a) Goods which are not subject to GST rules like exempt items or for personal use
   b) Goods meant for Cross border transportation (export)

Restrictions in E-Invoicing system

Following are a few basic restrictions set in the e-invoicing system:

1. Applicability: Businesses with an aggregate turnover of Rs. 5 cr or more in a financial year must generate E-invoices for all taxable and export transactions.
   
2. Specific Transactions: E-Invoices are applicable to both goods and services particularly for B2B transactions. E-Invoicing is not required for B2C transactions, Exempt supplies and Non-taxable supplies. However, as the government proposed announcing a pilot for B2C e-invoicing in 54th GST council meeting, we can soon expect B2C invoicing to be formalised as well.
   
3. Accuracy of Data: When generating e-Invoices, it is mandatory to provide accurate and complete details. If the GST system finds any information incorrect or insufficient, it will reject the e-Invoice. A significant limitation of the e-Invoicing system is that you cannot modify it, once submitted. In such cases, you must generate a new one by cancelling the submitted invoice.
   
4. One invoice per transaction: You cannot generate multiple invoices for the same goods or services.
   
5. Time limit: An e-invoice must be generated within 30 days of the date of generation of invoice.

Common restrictions to both systems

Now, there are certain restrictions common to both E-way bill and E-Invoicing systems. The same are listed below:

1. Non-filing of GST returns: If a business fails to file its GST returns on time, the GST portal blocks access to both E-Invoicing and E-way bill generation. Since both are linked to the GST system, this leads to non-compliance and penalties.
   
2. Mismatch between E-Invoice and E-way bill: The latest GST E-way bill amendments link both systems to GST portal access. Thus, any mismatch in GSTIN or any incorrect reference details will block the generation of E-way bills and E-Invoices.
   
3. Outstanding Tax liabilities: If a business has outstanding tax liabilities or has evaded taxes, the tax authorities may block the generation of E-Invoice and E-way bills.
   
4. Issues with the GSTIN: The authorities block the functionality of both the systems if a business has been –

• Blacklisted, 

• suspended or 

• its GSTIN is deactivated for any non-compliance.

5. Failure to maintain proper documentation: Tax authorities may block the usage of both systems temporarily, if a business-

• Fails to maintain proper documentation required under GST rules like maintaining proper books of accounts
• Is under scrutiny

Conclusion

The GST portal access is crucial for generating E-invoices and E-way bills, but various restrictions affect its availability. To maintain uninterrupted access without penalties, businesses should ensure compliance with GST return filing and proper documentation. Thus, businesses must stay vigilant and implement a GST software like GSTrobo^® to prevent complications in their e-way bill and e-invoicing systems.

Please wait..