E-Way Bill generation Without e-Invoice Details for B2B & B2E Transactions is Restricted from 1st March 2024 – E-Way Bill System Update 5 Jan 2024
Stay informed about the latest changes in the E-Way Bill System. Starting March 1, 2024, the government has implemented a crucial update that requires e-Invoice details for E-Way Bill generation, affecting businesses with an Annual Aggregate Turnover (AATO) above Rs. 5 Crores. This move aims to streamline the process and eliminate discrepancies between e-Way Bills and e-Invoices.
Background
Since October 2020, e-Invoice has been in operation for taxpayers with an AATO exceeding Rs. 500 Crores. Gradually, the system expanded, making e-Invoice generation mandatory for businesses with AATO above Rs. 5 Crores. Seamless integration with the e-Way Bill system ensures that transportation details sent during e-Invoice generation automatically trigger e-Way Bill generation.
Concerns Addressed
Analysis has revealed that some eligible taxpayers generate e-Way Bills without linking them to e-Invoices, particularly in B2B and B2E transactions. Mismatches in invoice details entered separately under e-Way Bills and e-Invoices create discrepancies. To mitigate these issues, starting March 1, 2024, e-Way Bill generation without e-Invoice details will not be allowed for eligible taxpayers in B2B and Export transactions.
Applicability
This update on E-Way Bill System applies specifically to e-invoice-enabled taxpayers and transactions related to B2B and Exports. However, e-Way Bill generation for B2C and non-supply transactions remains unaffected and will continue without any changes.
Check and Balances
To enforce compliance, the e-Way Bill generation process will now include checks for eligible taxpayers. For B2B and B2E (Exports) transactions, direct e-Way Bill generation without e-Invoice will be restricted. This applies to various E-Way Bill categories, including Supply, Exports, SKD, CKD, and Lots. For E-Way Bills generated by transporters, a similar check will be enforced on the Supplier GSTIN.
Adaptation
Taxpayers and transporters are urged to make necessary adjustments to their systems before March 1, 2024, to align with the updated regulations. While the E-Way Bill generation process will see changes, other operations such as Part-B updating and transporter ID updating will continue as usual.
Conclusion
This important update aims to enhance the accuracy and coherence between e-Way Bills and e-Invoices, fostering a more robust and efficient taxation system. Stay compliant and updated by incorporating the necessary changes to your systems before the implementation date of March 1, 2024.
To Download the Update from portal CLICK HERE
To Access the recent E-Way Bill System Advisory on HSN Code CLICK HERE
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Instruction for Electronic Issuance of GST SCN & Demand in DRC-01 & DRC-02: Delhi HC Order
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