10 Common Mistakes to Avoid While Generating an e-Way Bill

From the surface, issuing an e-Way bill appears like a straightforward task but companies tend to encounter a myriad of challenges due to oversights they tend to bareer. In other words these mistakes risk nullification of the document sabotaging delivery schedules delay instead supporting Authentication A thorough understanding of these hurdles eases your transportation challenges.

This article will address some recurring e–way billing inaccuracies along with definitive strategies for error resolution:

Incorrect Document Details

Mistakes such as improperly filling out the e-Way bill are rather common. This includes things like incorrectly inputting invoice numbers, dates, or amounts. If the GST returns are examined and there are discrepancies between physical documents and the details provided, shipments may be delayed and penalties can be enforced.

How to avoid:

This can best be avoided by ensuring that invoice number, date, and amounts are validated prior to e-Way bill generation. Programs like TallyPrime can reduce errors from fetching invoice details automatically. Furthermore, confirming detailed accuracy against records filed for GST returns ensures all information is congruent and avoids inconsistent filings.

Missing or incomplete HSN codes   

The Harmonized System of Nomenclature code assigns globally accepted codes identifying the type of goods being transported. Applying incorrect HSN codes may result in wrongful taxation on goods which invites scrutiny from tax authorities. Rejections of e-way bills due to taxes not matching appropriately either because of mismatch on goods described is another common occurrence tied with incorrect coding.How to avoid:  

It is prudent to have the appropriate HSN codes for all your goods, as often incorrectly attributed codes will lead to compliance issues. The most error-free method is keeping an updated list of products along with their corresponding HSN Codes. If you are using accounting software, it can auto populate correct codes for items based on the information you provided, thus minimizing errors during a retrieval task.  

Entering incorrect transporter ID or vehicle number  

The e-Way bill contains mandatory sections such as Transporter ID and Vehicle Number. In the event either detail is inaccurate, the document becomes null and void which may result in payment of fines or further shipping delays. Businesses make typographical errors while entering old or out-of-date numbers leading to stiff penalties more often than not.  

How to avoid:

It is important to know exactly how far apart the consignor and consignee are situated. Google Maps will help you easily measure that distance.  Various accounting applications also have a feature where they calculate miles based on addresses put in, so ensuring that the stipulated validity period aligns with the journey time becomes simpler.  

Inaccurate form selection:

Different form types correspond with specific movements of goods between locations or facilities. For instance sales are documented using invoices while stock transfers utilize a delivery challan; bills of supply are issued when tax isn’t charged. Selecting an inappropriate document leads to invalid e-way bills and unnecessary confusion arising alongside it.How to 

How to avoid:

Select the appropriate document for the corresponding type of goods movement. The shipment’s purpose must be confirmed before proceeding, whether it is a sale, stock transfer, or other activities. Having clarity on the right document type to use aids in compliance management and minimizes errors.

Creating e-Way bills for goods that are exempt from the requirement  

Some goods do not necessitate an e-Way bill, such as some agricultural products. Attempting to create an e-Way bill for these certain items will only lead to additional paperwork and unnecessary confusion.   

How to avoid:    

Always check GST portal’s latest list of exempted goods and maintaining a log of excluded items ensures that you aren’t generating e-Way bills for items that don’t need one.   

Not filling updates in part B (Vehicle details)  

Part B requires information about the vehicle, including its registration number and whether it is transporting any e-way billed goods. Leaving this section blank or filled incorrectly can make the document invalid.  

How to avoid:    

Always fill out Part B Vehicle Information with up-to-date details before creating the e-Way bill, especially if there is no other way to pre-fill accurate information and update it prior to the movement of goods.  

Delays in canceling or extending validity

Not doing this within the specified time frame can lead to invalidation of the document, during which the goods can also be halted mid transportation.  

What you should not do:  

Failing to set reminders for e-Way cancellation or extending permits in case of delays.  

Incorrect details of consignee/consignor  

The incorrect entry for the details of the recipient, who is a consignee and the sender who is a consignor may create problems under scrutiny. These must match with invoice data, or else they will be detained for thorough checks.  

What you should not do:  

Verification of all consigner and GSTINs including names and addresses as well as their respective addresses to ensure accuracy after computation by accounting software .  

Using invalid tax numbers

An expired GSTIN causes an e-way bill to become useless for both emitting and harnessing raw materials

What you shouldn’t do:

Make sure that working accounts are being used so no dead whitelisted numbers appear leading up to multi-level verification checkpoints causing hang-ups at critical measures

Steps to minimize making these errors  

To mitigate the common mistakes we discussed regarding the e-Way bill generation, there are several preventative measures which can prove useful. Simply adjusting a few behaviors and utilizing certain resources can save time and penalties while facilitating uninterrupted goods transport. The following guidelines help you generate e-Way bills with accuracy:  

• Opt for reliable software instead of entering information manually to increase accuracy. This reduces the chances of mistakes.  
• Make sure every team member receives proper training on creating e-Way bills. A well-trained team is less likely to make processes-related errors.  
• Remember to re-confirm details before generating the e-Way bill. Taking a few extra seconds makes a significant impact in avoiding problems later on.  
• Make active use of auto-fill functions provided by your software. These features retrieve relevant data from invoices reducing manual typing inaccuracies, thereby enhancing accuracy.
• Prepare stepwise checklists that guide you through each stage when generating an e-Way bill There are many steps as well as checks involved that require attention to detail and are easy to miss without following prescribed protocols.