The e-way bill platform, launched by the Government of India, aids in monitoring shipments digitally during transit. It also helps in generating bills that comply with GST regulations. Despite the system being user-friendly, you may sometimes encounter issues when generating an e-way bill through this government platform. This may lead to the rejection of a bill.
This is due to some common errors and mistakes while using the platform, including adding incorrect data. Thankfully, you can easily identify and avoid these common mistakes, ensuring that your operations run smoothly, and your business avoids any penalties.
Continue reading to know these common mistakes and errors in your e-way bill and how to avoid them.
What is an E-Way Bill?
An e-way bill, or an Electronic Way Bill, is essential for transporting goods over ₹50,000. It is a necessary document as per Section 68 of the Goods and Services Tax Act and Rule 138 of CGST Rules, 2017.
This document plays an important role in the conveyance of goods and in ensuring that transporters adhere to the GST rules. Upon generating an e-way bill, you get a unique e-way bill number (EBN) as the recipient, supplier or transporter transporting the goods.
9 Common E-way Bill Errors and How to Avoid Them
Here are some of the most frequent e-way bill errors and ways you can ensure you avoid them.
1. Providing Incorrect Details and Documentation
Providing incomplete or incorrect data or attaching incorrect documents is one of the main errors in the bill generation process. These may refer to errors in the addresses or names of the consignee or consignor.
Any such errors can lead to significant shipment issues, including confiscating your goods and being liable for penalties. To avoid such problems, ensure that while generating an e-way bill, you attach all the necessary documents and double-check the details you have added.
2. Generating E-Way Bill Through Wrong User IDs
Another common mistake while generating an e-way bill is using a different user ID at a different business location. These discrepancies may arise if you use an incorrect GSTIN or an invalid consignee GSTIN.
This can lead to discrepancies in the e-way bill, making it difficult to monitor the movement of the goods. It also leads to delays in the delivery of the goods and exposes you to penalties. You can avoid this by using consistent user IDs and re-checking them before submitting the bill application.
3. Inability to Monitor the Validity Period
An e-way bill includes a provision allowing you to prolong the bill’s validity, and you have an 8-hour window to request an extension. However, sometimes, users fail to utilise this feature and do not extend the validity of the bill.
If this happens, the user needs to pay penalties due to the expiration of the bill. You can avoid this by extending the validity during the 8-hour window provided on the portal.
4. Issuing a Single E-Way Bill for Multiple Invoices
The e-way bill system does not allow you to create one invoice for multiple challans. This means that each invoice is treated as an independent consignment, and you need to generate a separate bill for each invoice.
To avoid the rejection of your bill, you must furnish separate invoices for each consignment.
5. Providing Vehicle Number in the Incorrect Format
You must provide your vehicle number in section B of the e-way bill. However, this requires you to fill in the information in the proper format. If not, it can disrupt the system’s functioning and will not be accepted.
To address this issue, the government has issued frequently asked questions that offer clear guidelines that you can follow to enter the vehicle number correctly.
6. Generation of the E-Way Bill by a Third Party
A third party can register and generate an e-way bill through the portal or use an automated solution. These parties include the consigner, the consignee, transporters not registered under GST and transporters registered under GST.
Sometimes, these third parties might unintentionally omit their GSTIN, resulting in errors. This error can be avoided by remembering to add the GSTIN while generating the bill.
7. Inability to Provide a Transporter ID
When generating an e-way bill, including the transporter ID and the vehicle number is mandatory. The error arises when a third-party transporter fails to enter the transporter ID, which is required to track the vehicle transporting goods.
While generating the bill, third-party transporters must remember to provide the transporter ID to avoid confusion and errors.
8. Improper Utilisation of the Bulk Generation Facility
You can use the bulk generation facility to efficiently generate multiple bills by uploading multiple invoices. You need to follow a specific procedure for this facility and upload a JSON- enabled Excel file to generate the bills.
However, error arises when users use a previously used template and miss previous entries on the same sheet. You can avoid this by re-checking the entries.
9. Providing Incorrect Information About the Companies
Another error arises when you do not add the correct name of the companies while generating the bill. This typically happens when companies register on the portal with different names before generating the bill.
You can avoid this by using a consistent company name while registering on the portal and generating the e-way bill.
Another tip you can keep in mind is to know what the various error codes stand for on the platform. You can access this list of API error codes on the official e-way bill GST portal. For instance, 207 means that the invoice date is incorrect. This can help you understand the mistake in real time and correct it.
Keeping these pointers in mind, stay away from making these errors related to your e-way bills. If your bill is rejected, the best way to move ahead is to understand the underlying cause and take measures to rectify it in the future.
This way, you can avoid any transportation delays affecting your business. Likewise, identifying the fund requirements, based on the types of working capital management approach in place, is crucial too. This insight can help maintain cash flow, so that logistical operations stay on track, and without interruptions.