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E-Way Bill System in GST

Updated: Apr 7

The existing system of e-way bill system had some practical challenges. Addressing these the GST authorities has made 4 changes in their system. Here is the list of changes of forthcoming changes in the e-way bill system.

E-Way Bill System

Auto Calculation of the Route distance in kilometers

The first change in the generation of the e-way system if the auto- calculation of the distance in kilometers. This means that when the user will enter the pin codes of the parties, routes distance will automatically calculated using a proprietary logic. The e-way bill system will itself calculate and display the actual distance between supplier and recipient addresses.However, there is an option with them to edit the distance displayed by the system. But there is a limitation the changes done by the user cannot be more than 10% of the distance displayed for the given entry.

We can understand this condition through an example.

Suppose that system has displayed the distance between two parties pin codes, as 700 kilometers. Then the user can mention the actual distance but up to 770 kilometers ( 700KMs + 70KMs)

In case the source pin code and destination Pincode is same then the user can not enter more than 100 kilometers as a distance.

Please note:– If the user mentions the wrong pin code, the system will alert him as “Invalid Pincode”. But instead of alert, the user can continue with wrong pin code and enter the distance but these types of e-way bills in which invalid pin codes are mentioned by the user, department will be flagged for review by the department.

One e-way bill for one invoice/documents

After reviewing all the representation made by the transporters the government has decided to block of generation of multiple e way bills on one invoice or document only by any party – consignor, transporter and consignee.

That is, no party will be able to generate multiple e way bill for the same invoice. However, this system will come in the next version.

Extension of E-way bill of consignment is in transit

After understanding all representation made by the transporter, the government introduced a new feature, for the extension of e-way for the consignment in transit. Consignment in transit means goods in a warehouse or on road.

Under the new system, there are two types of change that user can update in e-way bill. The user needs to select first that consignment is in ‘Transit’ or in ‘Movement’

In Case of transit, the user needs to provide the address details of the transit place/

And in case of selection of movement, the user needs to provide the place and vehicle details from where the extension is required.

In both cases, the destination pin code details will be considered from Part-A of the e-way bill and distance will be calculated by the system automatically in the next version of e-way bill.

Composition dealers can not generate e waybill for interstate transaction

As per Gst law in India, Composition dealers are not allowed to do interstate transactions and hence not allowed to issue tax invoice. But, the existing e-way bill portal, does not restrict the same.

The change in the system is that it will not allow to composition dealers to facility for the generation of e way bill in case transactions and at the same time will not allow to enter any tax under CGST and SGST for the interstate transaction. Further under the ‘Document type’ “tax invoice” option will be disabled in case of composition dealer.

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