Latest Updates
10 Jan 2024
Blocking the generation of E-Way Bill without e-Invoice/IRN has been withdrawn.
05 Jan 2024
Reporting of 4/6 digit HSN in e-Waybill from 1st February 2024.
Electronic waybill or E-way bill is an important document that is mandatory for the movement of goods exceeding Rs. 50,000. It is a digital tool that helps to track the movement of goods and ensure compliance with the GST regime. However, there are instances when E-way bills are rejected, leading to delays and other complications. In this blog, we will discuss the various reasons for E-way bill rejections and their resolutions.
One of the most common reasons for E-way bill rejections is incomplete or incorrect information. This could include incorrect or missing details such as the consignee or consignor name, address, GSTIN, etc. It is essential to ensure that all the required fields are filled accurately to avoid any issues. When creating an e-way bill, the user must ensure that all necessary documents are attached. It is also critical to enter the correct information. Authorities have frequently discovered that when generating e-way bills, users do not enter the correct supporting details. This causes significant problems with the consignments. In such cases, authorities have no choice but to seize the goods and levy a penalty. Such errors also create difficulties during auditing and assessment. Users must exercise caution when providing details about supporting documents.
One of the most common mistakes that businesses make is providing incorrect company information in the e-way bill. This can include incorrect GSTIN (Goods and Services Tax Identification Number), address, and contact details. Providing incorrect information can lead to delays and penalties, and in some cases, even result in the seizure of goods. Before creating an e-way bill, the corporation or taxpayer may occasionally register under a different name on the e-way bill site. If this e-way bill error is made, and the shipment is scrutinized while in transit, severe penalties will be imposed. This could be difficult if the company is being evaluated and audited.
When it comes to e-way bills, conflicts can arise if the party that generates the bill is not the actual supplier or transporter of the goods.
E-way bills allow any third party to register and create an e-way bill using either a specific automated solution or an e-way bill website. This comprises the:
1. Consignee
2. Consigner
3. Unregistered transporter for GST
4. transporter with a GST number
Sometimes in these situations, the third party has a tendency to forget to include their GSTIN; as a result, businesses or taxpayers find it challenging to maintain accurate records of the e-way bill. In such cases, the supplier or transporter may face challenges in reconciling the data on the e-way bill with their own records. This can lead to discrepancies in the accounting of goods and cause delays or even legal issues.
When using the e-way bill system, it is important to note that it is not possible to create a single e-way bill for multiple challans or invoices. Each invoice or challan is considered a separate consignment and therefore requires its own unique e-way bill. This means that even if there are multiple invoices with the same consignee, each invoice must have its own e-way bill. However, it has been observed that some taxpayers or businesses often try to combine multiple invoices into a single e-way bill, which is not compliant with the regulations.
In order to avoid any issues or penalties, it is recommended that businesses create a separate e-way bill for each invoice or challan. This not only ensures compliance with regulations but also helps in better tracking of the consignment. Additionally, creating a separate e-way bill for each invoice can help in avoiding confusion or errors related to invoicing or billing. It is important to understand that each invoice or challan must have its own e-way bill, and combining multiple invoices into a single e-way bill is not permissible. By following this requirement, businesses can ensure compliance with regulations and avoid any potential issues or penalties.
The taxpayer is required to provide the vehicle number in Part-B of the e-waybill. The system won't work if this number isn't entered in the right format. According to system records, many users do not provide the vehicle's number in a systematic manner. How a vehicle number should be entered into the system is made clear in FAQs that the government has specifically released. An invalid format of a vehicle number could mean incorrect digits, missing alphabets or numbers, or the wrong sequence of digits. If the e-way bill has an invalid vehicle number, it can lead to delays and confusion during transit. The transporter may face hefty fines and penalties for such errors.
The transporter ID is a unique identification number issued by the government to transporters. It is important to include the transporter ID in the e-way bill, as it helps track the movement of goods and ensures compliance with tax laws.
Not including a transporter ID in the e-way bill can result in rejection of the document. This can cause delays in the movement of goods and lead to additional costs for the businesses involved. In addition, non-compliance with e-way bill rules can result in penalties and legal action. Businesses should ensure that they have the correct transporter ID.
As per the government records. It is frequently observed that when using third-party transporters for consignments, users stop at the vehicle number and do not complete the transporter ID. The transporters are then unable to reach the portal in the event that a vehicle malfunctions while in transition. Due to this, the vehicle number on the e-way bill frequently appears incorrectly, which causes additional confusion.
The e-way bill system now offers the option for bulk bill generation thanks to recent updates. The system is now more effective, and users now find the procedure to be more convenient. A taxpayer can now generate multiple e-way bills simultaneously and upload numerous invoices at one time. To use this facility, though, a certain procedure must be followed. The user must create the request using an excel file that supports JSON. The file generates e-way bills once it has been updated on the portal. When making a bulk generation request, most users struggle. They ultimately use a pre-existing template without considering any earlier entries that may have been made on the same sheet. By submitting this sheet, you risk creating erroneous e-way bills and future records. However, it is crucial to use this feature responsibly and ethically. Improper use of the bulk generation facility, such as generating e-way bills for goods that are not actually being transported or generating e-way bills with incorrect details, can lead to serious consequences. It can result in penalties, legal action, and damage to the reputation of the business. Additionally, generating e-way bills without a valid reason can lead to unnecessary burden on the e-way bill system, causing delays and inconvenience to other businesses. Therefore, it is essential to use the bulk generation facility only for legitimate transactions and ensure that all the details entered are accurate and truthful. By using this feature responsibly, businesses can ensure compliance with the law, minimize risks, and maintain trust with their customers and partners.
The user ID is a unique identifier assigned to the individual or entity generating the e-way bill. If an incorrect user ID is used, it may lead to discrepancies in the data, making it challenging to track the movement of goods. It can also result in delays and penalties due to the mismatch in the information. Hence, it is crucial to ensure that the correct user ID is used while generating e-way bills to avoid any such issues. It is recommended to double-check the user ID before initiating the e-way bill generation process to avoid any errors. It is frequently discovered that taxpayers create electronic way bills with a different ID for each entry they make. The IDs are frequently used interchangeably by one user who creates e-way bills for various entities. This method of bill generation results in incorrect GSTINs on the bills. In order to prevent recording errors, it is crucial to use consistent user IDs.
One of the key challenges that businesses face when using e-way bills is tracking the validity period of these bills. E-way bills have a limited validity period, and if they expire, the goods being transported can be stopped by authorities, leading to delays and even financial losses for businesses. However, tracking the validity period of e-way bills can be a challenging task, especially for businesses that deal with a large volume of shipments. This is because e-way bills are issued for each shipment, and keeping track of the validity period of each bill manually can be a time-consuming and error-prone process.
Currently, The government has set up a system that enables an e-way bill's validity period to be extended. This validity may be prolonged either before or after its eight-month expiration date. The majority of users, however, are unable to use this facility. This is in part caused by the e-way bill portal's tracking mechanism's limited effectiveness.
In conclusion, E-way bill rejections can cause delays and other complications in the transportation of goods. It is essential to ensure that the E-way bill is generated with accurate information, is valid, and has a sufficient balance. In cases of rejection, it is important to identify the reason and take the necessary steps to resolve it. By understanding the reasons and resolutions for E-way bill rejections, businesses can ensure compliance with the GST regime and avoid any issues in the transportation of goods.
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