Non-compliance with e-Invoicing can block your E-way Bill generation!

E-Invoice has been operational since October 2020 for taxpayers with Annual Aggregate Turnover (AATO) above Rs. 500 Crores and eventually, in a phased manner, e-invoice generation is made mandatory for taxpayers with AATO above Rs. 5 Crores. From day one, e-Invoice is seamlessly integrated with the e-Way bill system, and accordingly, e-Way bills are generated along with e-Invoice. That is, during e-invoice generation, if the transportation details are sent, the e-waybill is automatically generated. Most of the taxpayers are generating the e-invoice along with the e-way bill.

However, on analysis, the department found that some of the taxpayers, who are eligible for e-Invoicing, are generating E-Waybills without linking with e-Invoice for B2B and B2E transactions. In some of these cases, the invoice details entered separately under e-Waybill and e-Invoice do not match certain parameters. This is leading to a mismatch in the e-Waybill and e-Invoice statements.

Hence, to avoid such situations, e-Waybill generation will not be allowed without e-Invoice details from 1st March 2024. National Informatics Centre has issued this update on 05th of January, 2024. This is applicable for e-invoice-enabled taxpayers and for the transactions related to Supplies under B2B and Exports. However, EWBs for other transactions such as B2C and non-supplies will function as usual without any change.

Check and Balances

E-Waybill generation process will be incorporated with appropriate checks for taxpayers (Suppliers) eligible for e-invoicing. In the case of B2B and B2E (Exports), direct e-Waybill generation without e-Invoice will not be allowed for Suppliers eligible for e-invoicing. This applies to the E-Waybill categories of Supply/Exports/SKD/CKD/Lots.

However, e-Waybill generation for transactions related to B2C and other non-supplies will be allowed as usual. Similarly, for the E-Way Bills generated by the transporter, a similar check would be enforced on the Supplier GSTIN. Other operations such as Part-B updating, transporter ID updating, etc. will continue as usual without any change.

All taxpayers and transporters are requested to make necessary changes in their system so that they can adapt to the changes from 1st March 2024.

How to link an E-way bill with an E-invoice?

• Upload the invoice to the e-invoice registration portal and validate the details.
• The GSTN will verify the mandatory details, and upon successful validation, the IRP will issue a unique number called invoice reference number and a QR code on the invoice.
• This data will be transferred to the e-way bill portal, where section 12 of the e-invoice schema (e-way bill details) is reported. The APIs are used to generate e-way bills from IRN.
• A user should then log in to the e-way bill portal and enter the IRN of the invoice for which he needs to generate an e-way bill.
• Part-A and Part-B will be auto-populated if the required details are updated in the e-invoice.
• Click submit. If there are no errors, the e-way bill will be generated, and one can download it as a JSON or PDF file.

Conclusion :

Connecting e-Invoices and e-Way bills aims to match data and improve oversight. Taxpayers should ensure that they have an updated system to ensure this compliance from 01st March 2024.

How LogiTax can help you?

1. Bulk generation and cancellation of E-Invoice and E-Way Bill in a single click. It allows businesses to streamline the process of generating and canceling multiple invoices, saving time and effort.
2. E-mail notifications to users and their customers help in providing real-time updates regarding the E-invoices and E-Way-Bills generation. Users can also customize the email by adding their logo to the E-Invoice.
3. Error messages are generated if the generation of IRN (Invoice Reference Number) or E-Way Bills. These error messages provide insights into the reason for the failure, allowing businesses to rectify the issues.
4. Scheduling of E-Way Bills in case of early extensions enables businesses to plan and schedule the generation of E-Way Bills in advance. It ensures compliance with transportation requirements and avoids last-minute delays.
5. Auto calculation of distance simplifies the process of calculating the distance for E-Way Bill generation.
6. LogiTax Invoice software allows generating E-Invoices for past periods not previously covered under the E-Invoicing system.
7. 30+ reports provide comprehensive insights and analysis of E-Invoice and E-Way Bill data, covering various aspects. These reports aid in monitoring, auditing, and compliance management.

LogiTax software ensures Efficient management of E-Invoices and E-Way Bills. It automates processes, provides notifications, and data visualization dashboards, and generates comprehensive reports. Get started with the LogiTax E-Invoicing solution today for free!