There have been some recent changes in the E-Way Bill and E-Invoicing processes that may affect how businesses operate. These changes focus on improving security and ensuring timely compliance. Here’s a breakdown of what businesses can expect and how these updates will directly impact their operations.
What Will Change for Businesses
1. Mandatory Multi-Factor Authentication (MFA)
From January 1, 2025, MFA will be required for all businesses with Aggregate Annual Turnover (AATO) above ₹20 crores accessing the E-Way Bill and E-Invoicing portals. This means users will need to verify their identity using an additional step beyond the usual password login.
AATO-Based Rollout Plan:
- Above ₹100 crores: MFA has been mandatory since August 20, 2023.
- Above ₹20 crores: Optional from September 11, 2023; mandatory from January 1, 2025.
- Above ₹5 crores: Mandatory from February 1, 5.
- All users: Mandatory from April 1, 2025.
Impact on Businesses:
- System Changes: Businesses will need to ensure their IT systems are compatible with MFA. This includes updating software to support the new login process.
- Potential Disruptions: Without proper preparation, businesses could face login issues, leading to delays in E-Way Bill and E-Invoice processing. It’s crucial to have a plan in place to support employees during this transition.
E-Way Bill Generation and Extension Limits
Two important changes have been introduced regarding E-Way Bill management:
1. Document Date Restriction: From January 1, 2025, E-Way Bills can only be generated for documents that are not older than 180 days from the date of generation.
- Practical Impact: Businesses must ensure that their documents, such as invoices, are issued and processed promptly. Delays in document handling could result in an inability to generate E-Way Bills, disrupting the transportation of goods.
- Necessary Adjustments: Companies need to review and possibly overhaul their document processing systems to ensure all required documents are current and readily available for E-Way Bill generation.
2. Extension Limit: E-Way Bills can only be extended up to 360 days from the original generation date.
- Practical Impact: This limits the time goods can remain in transit under the same E-Way Bill. Businesses must plan their logistics more carefully to avoid exceeding this limit, which could otherwise lead to additional administrative work and potential delays.
- Necessary Adjustments: Effective coordination between the logistics team and other departments is essential. Businesses may need to adopt better tracking systems and establish clear timelines for the movement of goods to avoid complications.
Recent Changes to E-Way Bill System: E-Way Bill Update
Conclusion
The recent changes to the E-Way Bill and E-Invoicing systems will have a direct impact on how businesses handle compliance and logistics. While these updates aim to enhance security and reduce misuse, they require businesses to make practical changes to their processes.
To assist with these transitions, businesses might consider utilizing specialized tools designed to streamline E-Way Bill processes. For instance, GSTrobo®̥ offers an advanced E-Way Bill software that simplifies the generation, management, and tracking of E-Way Bills. It automatically extends your E-Way Bills as required and sends reminders for expiring bills, helping you align with the changed timelines for generation and extension.