Logistics and transportation are a vital part of any business, and the tracking of consignments is key. Cargo status information that is incorrect can hamper the very nature of business operations, with bottlenecks and regular delays. Multiple checkpoints, leakages and problems with tax revenue collection can crop up, all avoided by the E-way bill system. Login credentials of taxpayers are needed for Eway bill generation for any consignment that needs to be transported, and an E-way bill is generated easily online.
Explaining the E-way Bill
To curb problems and issues, such as stolen cargo, illegal goods distribution, and the like, the Goods and Services Tax Network (GSTN) launched the E-way Bill system in 2018. This is a digitally generated bill that is mandatory for the transportation of any consignment of Rs. 50,000 or more in value. The bill is generated from the portal of the GSTN. Each taxpayer who is registered as such needs to hold this bill whenever transportation takes place. With use of the E-way bill, supply chain management has been streamlined for most businesses, large and small, dependent on transportation of goods. The E-way bill is a centralized online process and has eliminated state transport bodies that previously made transportation a more complex activity. Transportation itself has become quicker as the need to halt at various checkpoints has stopped.
Uses and Advantages of the E-way Bill
Uses of the E-way bill are tied in to its advantages and they are mentioned below:
- Convenient – It is easy to operate the E-way bill system. Login details are needed and a document can be executed online for transportation of consignments.
- The E-way bill mandate has aided in reducing revenue and making prevailing systems of transportation and tracking more efficient.
- In the case of cargo tracking, which can be conducted in real-time, companies can make the most of warehouse storage facilities.
- With the E-way bill, assembly line activities can be planned accurately and companies can achieve targets of delivery/supply.
- Technology allows for the E-way bill to be integrated with invoicing functions within the same system. This is a boon for businesses. Future developments predict that required information will correspond with statements of income. Consequently, this will enable transparency in revenue for government audits. It will also indicate any irregularities in the system.
The Automated Way Ahead
The network of GSTN offers a secure means to automate the process of transportation of consignments. Technology provides users with ways to create Ewaybill through third party devices without major alterations to existing systems. Tools can be amalgamated while giving you a complete end-to-end process, right from procurement to payment and to delivery of consignments. There is no room for manual errors as everything is done online by automation. The system has an audit trail so that any error may be detected and a solution enforced. Obviously, the amount of time and effort saved is the main benefit of this process.
The E-way bill spells future success for India’s abundant and busily expanding logistics industry. There’s more information on the E-way bill as you will find at Finserv MARKETS.