The NIC released an advisory on 5th January 2024 issuing e-way bill new rules but withdrew the same on 10th January 2024. The earlier advisory stated that businesses will find their e-way bill generation being blocked if they do not include the necessary e-invoice details, such as the Invoice Registration Number (IRN) from 1st March 2024. Read on to learn more about the original advisory, its impact on businesses and latest update on its implementation.
The orginal advisory directed certain businesses falling under the e-invoicing system to generate e-way bills with e-invoice details. It would be mandatory for the following businesses-
One must note that this rule does not apply to Business-to-Customers (B2C) transactions, non-supplies (involving delivery challans), non-GST or exempt supplies (bill of supply). Likewise, businesses that do not fall under the purview of e-invoicing can go for direct e-way bill generation.
The NIC's original advisory for blocking of e-way bill generation for non-linking of e-invoice details would have applied from 1st March 2024. This means that e-invoice-enabled taxpayers were advised to generate e-way bills and e-invoices together to avoid discrepancies for all their B2B and export transactions starting from 1st March 2024. However, the NIC issued another update on its portal- https://ewaybill.nic.in/ on 10th January 2024, to withdraw the original advisory, further details awaited. A snapshot of the NIC updates column on the e-Way Bill portal is given below-
The NIC introduced some checks in e-way bill generation to identify mismatches between the e-way bills and e-invoices through the orginal advisory, that is currently withdrawn. For B2B and export transactions, e-invoicing applicable businesses cannot generate e-way bills directly without the e-invoice.
This applies to the e-way bill categories such as supply, exports, semi-knocked down (SKD), completely knocked down (CKD) conditions, or lots. However, such businesses can continue with direct e-way bill generation for B2C and other non-GST supplies.
Wherever the transporter generates e-way bills, the supplier GSTIN will be validated for this check. If the supplier GSTIN is subject to e-invoicing, then details like the IRN must be compulsorily entered for the e-way bill generation.
The rest of the e-way bill details, such as the Part-B or transporter ID update, shall continue as before.
Currently, e-way bill generation gets blocked when taxpayers do not file their GST returns for the previous two consecutive months/quarters. The e-way bill system exchanges information with the GST system for implementation.
If the original advisory by NIC gets implemented from 1st March 2024, the e-way bill facility will also be blocked if the e-way bill lacks e-invoice details at the time of generation. e-way bill generation without e invoice details can lead to the following issues-
However, the orginal advisory has been withdrawn by the NIC without any further details. Hence, until further communication is received, taxpayers must continue to follow the current processes.
If the orginal advisory is implemented, it is likely that any enterprise not generating e-invoices before e-way bills, can face issues. They must first generate e-invoices and thereafter e-way bills with the IRN mentioned in it. Hence, business processes in such enterprises will have to undergo modification. Teams must be retrained for the changed workflows. Since the advisory by NIC was withdrawn on 10th January 2024, the taxpayers should continue to follow current processes.
On or before 1st March 2024, enterprises generating e-invoices and e-way bills must ensure that they happen simultaneously or generate e-way bills after generating e-invoices. ERP systems/compliance solutions should incorporate additional validations to disallow direct e-way bill generation for B2B and export sales. However, with the advisory by NIC withdrawn, the taxpayers must wait until any further communication by NIC and GSTN.
Meanwhile, it is always a best practice to generate e-invoice alongwith e-way bills for B2B transactions as this can avoid any mismatches between the two documents at later point.
While the NIC's advisory has been withdrawn, adopting a unified e-invoicing and e-way bill solution always saves your team's time and efforts. Solutions by Clear allows users to-
The new e-way bill rules 2024 have put non-compliant businesses on the radar. Details going into the e-invoices and e-way bills must be consistent. Lack of validations in place can lead to compliance delays and cause business disruptions.
The NIC issued an advisory, later withdrawn, requiring businesses under the e-invoicing system to include e-invoice details in e-way bills starting 1st March 2024. Impact included blocking e-way bill generation if e-invoice details were missing. If implemented, businesses might face delays, penalties, and goods seizure. With the withdrawal of the advisory, enterprises must follow current processes until further notice.