E-Invoicing and E-Way Bill: What You Need to Know?
E-Invoicing has been implemented in a phased manner since October 2020 and is now mandatory for taxpayers with an Annual Aggregate Turnover (AATO) above Rs. 5 Crores.
E-Way Bill is a document that is required for the movement of goods of value more than Rs. 50,000. E-Way Bill can be generated online on the E-Way Bill Portal by providing the invoice details and the transportation details.
E-Invoicing and E-Way Bill are integrated systems that aim to improve the compliance and efficiency of the GST regime. E-Invoicing enables the automatic generation of E-Way Bill if the transportation details are provided along with the invoice details on the IRP. This saves time and effort for the taxpayers and reduces the chances of errors and duplication.
However, some taxpayers who are eligible for E-Invoicing are generating E-Way Bills without linking them with E-Invoices for B2B and export transactions. This leads to a mismatch in the data reported on the IRP and the E-Way Bill Portal and violates the GST rules.
Therefore, the National Informatics Centre has issued an update on 05th January 2024 that E-Way Bill generation will not be allowed without E-Invoice details from 1st March 2024 for taxpayers who are covered under the E-Invoicing mandate and for transactions related to supplies and exports. However, E-Way Bills for other transactions such as B2C and non-supplies will continue as usual.
Non-compliance with E-Invoicing and E-Way Bill can have serious consequences for the taxpayers, such as:
- Invalid or incorrect invoices that can attract a penalty of Rs. 25,000.
- Non-generation of E-Invoices that can attract a penalty of Rs. 10,000 or 100% of the tax due, whichever is higher.
- Detention or confiscation of goods and vehicles that are transported without valid invoices or E-Way Bills.
- Denial of Input Tax Credit (ITC) claim for the recipients of the invoices that are not registered on the IRP.
Hence, it is advisable for the taxpayers to comply with the E-Invoicing and E-Way Bill rules and avoid any penalties or disruptions in their business operations.
Dexter Consultancy is a leading tax consultancy firm in Vadodara that can help you with E-Invoicing and E-Way Bill compliance. We have a team of qualified and experienced consultants who can assist you with the registration, generation, and verification of E-Invoices and E-Way Bills. We can also help you with other tax-related services such as GST registration and return, company registration, accounting services, auditing, and trademark registration.
Contact us today and let us be your trusted partner for your tax solutions. You can reach us at 9974037317 or visit our website1 for more details.
