Transportation and logistics are essential to many businesses, and tracking goods even more so. Incorrect cargo status information can lead to bottlenecks and frequent delays due to things like checkpoints and leakages, while hampering tax revenue collection. Also, stolen cargo and illegal distribution poses a legitimate threat to goods. To help solve these problems, the Goods and Services Tax Network (GSTN) introduced the concept of the E-Way Bill in 2018.
What is the E-Way Bill?
GST E-Way Bill is an electronic bill required for transporting any shipment of goods worth more than ₹50,000. The bill can be generated from the GSTN portal and every registered taxpayer is required to carry this e-way bill along with the goods transferred. Various complex but necessary rules govern this procedure. Therefore, manual document upload is not the most convenient way to deal with large shipping volumes.
The rise of E-Way Bill usage has facilitated and streamlined supply chain management for most transport-dependent businesses. As a centralized process, the E-Way Bill has removed state transport regulations, the complexities of which are familiar to many. By eliminating the need to stop at every checkpoint and reducing documentation requirements, the E-Way Bill has made a commendable impact on the logistics industry.
Advantages and Uses
This mandate has helped curb revenue and made existing systems more efficient. Real-time cargo tracking helps companies optimize warehouse usage for better storage. Furthermore, it’s now easier to plan assembly line activities accurately as companies can effectively achieve the ‘Just in Time’ process in their units. In addition, this lowers the cost dependency on transportation, making finance management a lot easier.
As another step in the right direction, the E-Way Bill is now integrating with e-invoicing within the same network, removing more burdens for businesses. Future roadmaps show that all the necessary information will be correlated with income statements going forward. This will increase business revenue transparency for government audits and, at the same time, immediately point out any irregularities. Hence it is paramount that any data you submit is correct and consistent with other relevant or dependent processes.
The Path to Automation
The GSTN network provides a secure way to automate this process by opening up API. Users can create E-Way Bills via third party tools without the need for major changes to your existing systems. These tools can be easily integrated while providing a fully automated end-to-end process, from procurement all the way to payment and delivery of goods. Automating this process ensures manual errors are negated. The solution’s detailed audit trail ensures that any anomaly can be immediately found and remedied. This saves immense time and effort and guarantees you are fully compliant with all regulations.