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A few days back, the GST Council deliberated on some much-needed changes in the GST e-way bill. In this blog, we will present to you these 4 upcoming e way bill changes, which you should definitely know in order to have a seamless e-way bill experience.

4 upcoming e way bill changes to note

Auto calculation of route distance based on PIN code

Now, the e-way bill system is being enabled to auto calculate the route distance for movement of goods, based on the pin codes of the source and the destination locations. In short, the upcoming e way bill changes will ensure that the system will calculate and display the actual distance between the supplier and recipient addresses. The user can enter the actual distance as per his movement of goods, but, it will be limited to a maximum of 10% more than the displayed distance for entry.

In case, the source pin and destination pin are same, the user can enter up to a maximum of 100 Kms only. If the pin entered is incorrect, the system would alert the user as “INVALID PIN CODE”, but he will be able to continue entering the distance. Further, the e-way bills having invalid pin codes will be flagged for review by the department.

The route distance calculation between source and destination will use data from various electronic sources. This data will employ various attributes, such as – road class, direction of travel, average speed, traffic data etc. These attributes are picked up from traffic that is seen on national highways, state highways, expressways, district highways as well as main roads inside the cities. A proprietary logic is then used for approximating the distance between two postal pin codes. The distance thus derived is then provided as the motorable distance at that point of time.

Blocking of generation of multiple e-way bills against a single invoice

Based on the representation received by several transporters, the government has decided not to allow generation of multiple e-way bills based on one invoice, by any party – consignor, consignee and transporter. Thus, once the e-way bill is generated with an invoice number, then none of the parties – consignor, consignee or transporter – will be able to generate the e-way bill with the same invoice number.

Extension of e-way bill in case the consignment is in transit

Several transporters had represented about incorporating the provision to extend the e-way bill, when the goods are in transit i.e. goods on road or in the warehouse. The same will now be part of the e-way bill system.

During the extension of the e-way bill, the user is prompted to answer whether the consignment is in transit or in movement. On selection of “In Transit”, the address of the transit place needs to be provided. On selection of “In Movement”, the system will prompt the user to enter the place and vehicle details from where the extension is required. In both these scenarios, the destination pin will be considered from Part A of the e-way bill for calculation of distance for movement and validity date.

Blocking of Interstate Transactions for composition dealers

As per the GST Act, the composition tax payers are not supposed to do Interstate transactions. Hence the next version of the e-way bill version, will not allow generation of e-way bill for inter-state movement, if the supplier is a composition tax payer. Also, the suppliers of composition tax payers will not be allowed to enter any of the taxes under CGST or SGST for intrastate transactions. Also, in case of a composition tax payer, the document type of “Tax Invoice” will not be enabled.

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Pramit Pratim Ghosh

Author: Pramit Pratim Ghosh

Pramit, who has been with Tally since May 2012, is an integral part of the digital content team. As a member of Tally’s GST centre of excellence, he has written blogs on GST law, impact and opinions - for customer, tax practitioner and student audiences, as well as on generic themes such as - automation, accounting, inventory, business efficiency - for business owners.