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Impact of E-Way Bill on the Indian Logistics Industry

The impact of the E-way bill on the Indian logistics industry is of prime importance. Transporters deal with practical day-to-day issues and in this article, we will understand how they should deal with them.

Advantages of E-way bill for the logistics industry

1. Easy to use – The E-way bill system is designed to make it easier for the users to generate the E-way bill. There are a couple of ways to generate the E-way bill –

a) Generate the bill on their website – www.ewaybill.gov.in

b) E-way bills can be generated and canceled through SMS too

c) E-way bills can be generated and canceled via an Android app also, and via site integration through their proprietary APIs.

2. Avoiding tax evasion – By making the generation of e-way bills online, the user needs to enter all the information needed for consignments to move from one place to another. This includes both inter-state and intra-state movements. The government has put this system in place to ensure that transporters/consignors/consignees are not evading any GST collections which was the case earlier. Since everything is accounted for in the system, there is a foolproof process that prevents any tax evasion.

3. Shifting to a digital platform – With the introduction of the online platform, outdated systems have been eliminated. Making use of the efficiency of the online E-way bill system, redundancies have been eliminated by implementing tech-driven processes.

4. Ease of doing business – The E-way bill system reduces the amount of paperwork done because of rigid state rules. This makes inter-state business much easier and less complicated. The ease of doing business will give a boost to the overall business happening between the states of India. Consequently, states should see an increase in their revenues. Businesses are spending less time on paperwork and more on increasing their business reach. All of this will greatly contribute to the economy of the country.

5. Quick movement of consignment – The E-way bill facilitated the removal of check posts over highways and cross borders which resulted in ease of movement of goods.

6. Reduced logistics cost – E-way bill reinforces proper invoicing and hence reduces tax evasion. Since this will contribute towards the country’s overall revenue, the E-way bill is expected to reduce the overall logistics cost to GDP proportion, in the long run.

Disadvantages of E-way bill for the logistics industry

1. Accessibility to the infrastructure – Small transporters might not even have the access to the internet. The government has to make sure that even a small transporter in the remotest of areas has access to the internet and the E-way bill system.

2. Implementation timeline differences in different states – Not all states have implemented the E-way bill system. The system cannot be optimally used unless all states have implemented it. Deferring the implementation is making it underutilized and inefficient.

3. Multiple bills – A large number of bills are generated since several modes of transport might be used for the goods to finally reach their destination. Every shipment will have a large number of bills each time the mode of transport or vehicle is changed.

4. Delays in generating E-way bills – Many times fresh E-way bills have to be generated because of changes in orders, routes, or any other reason. This can potentially cause delay.

FAQs of Impact of E-Way Bill on Indian Logistics Industry

1. What is an E-way bill in logistics?

An e-way bill is a mechanism that ensures that GST compliance is followed by businesses.

2. For how long is the E-way bill valid?

The validity of the e-way bill is dependent on the distance being traveled by the goods.

3. Is freight included in the e-way bill?

No, it doesn’t include freight charges.

4. Is an E-way bill required for the courier?

Yes, an e-way bill is required for the courier as well. Any consignment exceeding the value of Rs.50,000 needs to be accompanied by the e-way bill.

5. What are the disadvantages of the E-way bill?

The E-way bill system requires internet access. It is difficult for small business owners situated in remote areas of India to have access to the internet. Hence, the system cannot be used there.

6. Is an E-way bill mandatory for intrastate supply?

An E-way bill is mandatory for intrastate supply also if the invoice value exceeds Rs. 50,000. It is mandatory to generate a GST E waybill.

7. Can I transport the goods with the E-way bill without vehicle details in it?

Vehicle details are optional as of now. But an E-way bill without a vehicle number is also considered invalid. In such cases, the portal provides the option to update the vehicle number on the document.

8. What happens if the waybill is generated but goods are not transported?

The time limit to cancel E-way bills is only up to 24 hours from the time it was created. After that cancellation is not allowed by the system.

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