Common mistakes businesses must avoid after the latest E-Way Bill Portal enhancements Businesses using the EWB system are required to make essential adjustments with new changes made by Goods and Services Tax Network (GSTN). Over here are some recent EWB updates aimed at improving data accuracy, enhancing goods movement traceability and efficiency in compliance.
Two significant advancements we see in that respect is a mandatory capturing of Ship-To GSTIN in Bill-To/Ship-To transactions and a voluntary E-Way Bill Closure facility. These changes are intended to enhance E-Way Bill compliance but also pose additional compliance obligations on taxpayers, transporters, ERP vendors, GST Suvidha Providers (GSPs), Application Service Providers (ASPs). These restrictions cause GST compliance mistakes, operational interruptions and problems in audits for businesses that do not update their systems and processes. This user guide describes the most significant mistakes that every business should avoid right through the latest E-Way Bill portal improvements and for what they must do to remain compliant.
What are the Latest E-Way Bill Portal enhancements? Enhancement Description Mandatory Ship-To GSTIN Capture Businesses must now enter the Ship-To GSTIN while generating E-Way Bills in Bill-To/Ship-To transactions. If the consignee is unregistered, URP must be entered. Voluntary E-Way Bill Closure Facility A new feature allows suppliers, recipients, transporters, drivers, or authorized persons to voluntarily close an E-Way Bill after successful delivery of goods. Mobile Number-Based EWB Closure Businesses can provide a mobile number during E-Way Bill generation, enabling authorized individuals to close E-Way Bills through OTP-based verification. API Updates for ERP Systems and Integrators Updated API specifications have been released for ERP vendors, GSPs, ASPs, and system integrators to support the new EWB functionalities. System Readiness Requirements Stakeholders are required to review revised workflows, update internal processes, conduct testing, and train users on the new compliance requirements.
Read about: Top reason for E-Way Bill rejection
What is the importance of the EWB changes The EWB system represents an integral piece of compliance for GST purposes. Errors in the generation of and then in the reporting of EWBs can create inconsistencies between invoices, whether for movement and/or registration and GST filing.
The changes from the last round of updates are meant to: Increase the transparency of movement of goods Increase the integrity of the data Decrease the inconsistencies related to reporting of such Allow greater control of the closure of transactions through the systems Improve the ability to track compliance throughout the supply chain Companies that take these changes into consideration will limit their exposure to compliance risks as they will also have the ability to maintain smooth operations of their logistics.
Mistake #1: Ignoring mandatory Ship-To GSTIN requirements One of the biggest changes that have recently occurred is that when generating an E-Way Bill for Bill-to/Ship-to transactions, it now requires the entry of the actual ship-to GSTIN. Many companies are only thinking about the bill-to GSTIN and have not thought about the consignee, so submission is not a problem. However, it is now a requirement that you enter a GSTIN for the ship-to address each time you create an E-Way bill.
Why this is a problem Reason for the incorrect Ship-to GSTIN number for an E-Way Bill will result in:
Almost impossible to submit e-wb data or have a proper validation of the data Failure to provide an Accurate Ship-to GSTIN Number Will Result In: Temptation for the Consignee during an Audit Increased review from taxation authority. Best Practice Immediately review your company's ERP generation process to confirm that a Ship-to GSTIN is a required entry for all Bill-to/Ship-to transactions.
Mistake #2: Incorrect handling of Unregistered Recipients Sometimes consignees do not have a GST number. Companies will mistakenly leave the Ship To GSTIN field empty or use an incorrect GSTIN.
What businesses must do When shipping goods to an unregistered consignee, you must enter URP (Unregistered Person) into the Ship To GSTIN field.
Risks of incorrect entry Some common compliance errors made when entering the Ship To GSTIN are:
Not completing the Ship To Field Using placeholder information Entering Invalid GSTIN’s Using internal customer codes instead of URP Here, businesses should change their validation rules to ensure that URP will automatically be determined anytime the consignee does not have a GST registration.
Read more on: Complete E-Way Bill System User Manual for Taxpayers
Mistake #3: Not implementing the new E-Way Bill Closure process E-Way Bill Closure has been greatly enhanced through the introduction of E-Way Bill Closure enhancement.
What is E-Way Bill Closure? E-Way Bill Closure is a new process that allows all parties involved in the supply chain to close an E-Way Bill voluntarily after successfully delivering the goods. The purpose of E-Way Bill Closure is to enhance the traceability of the transaction and to ensure that all completed transportation of the good is appropriately captured and recorded.
Who can close an E-Way Bill? The following parties have the ability to initiate the closure of an E-Way Bill:
Supplier Recipient Transporter Driver Authorized person whose mobile number is registered for closure Common mistake One of the most common mistakes businesses make is to assume that E-Way Bill closure is not necessary since it is not mandatory at this time. By not using the E-Way Bill closure process, businesses will experience deficiencies in record management and result in data that will not enhance their ability to demonstrate compliance documentation.
Best practice Businesses should utilize E-Way Bill closure in their normal delivery confirmation and to keep records of all closures in the future for use in the audit process.
Mistake #4: Delaying ERP and API updates The latest EWB updates apply to all users, not just portal users. ERP vendors, Application Service Providers, Goods & Services Providers, and API integrations all must also update their platforms. If an organisation generates E-Way Bills automatically, it should be reviewing the software tools they use immediately.
Common ERP-related errors Continuing to use an outdated API payload. Not capturing the Ship-To GSTIN fields. Missing integration of the closure workflow. Poor validation checking. Failing to test changes made to a sandbox. Why this matters If an organisation hasn't updated the ERP systems before going live, there is a risk that E-Way Bill generation will not work and that basic supply chain operations will be interrupted.
Recommended action All organisations should:
1) Review all updated API documentation
2) Test all integrations within the sandbox
3) Validate the new payload structure
4) Update all internal workflows
5) Perform user acceptance testing
Mistake #5: Failing to train employees on new compliance requirements Employee training about new compliance standards is another common mistake. Moving to new technology alone will not solve many of the GST compliance problem; much of it arises as employees fail to update how they’re doing something.
Why training matters Even when an ERP has been set-up properly, there is still the potential for entering incorrect data or not following updated procedures.
Best practice Provide awareness sessions and update the SOP document prior to implementation.
E-Way Bill Compliance checklist for businesses To ensure your readiness for the most recent EWB updates, use the following checklist:
Compliance Requirement Action Required Ship-To GSTIN Make mandatory in ERP workflows URP Validation Configure automatic validation EWB Closure Implement delivery closure process API Updates Review latest specifications Sandbox Testing Complete testing before rollout Employee Training Conduct awareness programs SOP Updates Revise compliance documentation
You should read about: Goods and Services Tax Network (GSTN): Key Insights and Functions
Conclusion There are now improvements to the E-Way Bill portal that make tracking and improving GST compliance and the movement of goods easier. Companies who continue to remain unaware of the Eway-bill system updates risk failing to comply with regulatory requirements. The following are top priorities for an organization: accurately capturing Ship-To GSTINs, enabling the E-Way Bill closure processes, updating their ERP integration(s), and training (or re-training) their employees regarding the new regulations governing E-Way Bills. These actions done now will enhance E-Way Bill compliance for your organization and help avoid costly mistakes related to GST in the future.
Managing E-Way Bills manually can be time-consuming and prone to errors. With Swipe , businesses can generate, manage, and track E-Way Bills seamlessly from a single platform. Swipe helps ensure GST compliance while reducing paperwork and saving valuable time.
FAQs What are the latest changes to E-Way Billing? The most recent EWB updates include recording of the Ship-To GSTIN on all Bill-To/Ship-To transactions as a requirement, and a voluntary process for closing E-Way Bills once the goods arrive at their destination.
Is the Ship-To GSTIN a requirement? Yes. The Supplier must collect the GSTIN number for the Ship-To location for Bill-To/Ship-To E-Way Bills.
If I have an unregistered recipient, what should I enter into the Ship-To GSTIN field? The consignee in this instance would be URP (unregistered recipient), and as such, you should use URP in the Ship-To GSTIN field.
What is the E-Way Bill Closure facility? The E-Way Bill Closure Facility is a process that allows for the closure of E-Way Bills after the goods are delivered, for the supplier, purchaser, transporter, driver, or authorized person completing the goods delivery.
Do I need to update my ERP system? Yes, ERP systems including APIs must be updated to ensure compliance with all new EWB requirements and closure procedures.
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