Mismatch in e-Way Bill and e-Invoice: Can We Change Invoice Number in e-Way Bill?

To all the business owners out there, there's an important update we want to gear up for. From March 1, 2024, we can't issue e-way bills without an e-invoice or an IRN for our business-to-business (B2B) and business-to-export (B2E) transactions. 

We need to make sure our invoices and e-way bills are aligned to save business from any non-compliance. This article talks about why those mismatches among e-manner bills and e-invoices appear. It's important to understand this to avoid any trouble.

What is the mismatch in e way bill and invoice?

Let us assume you sell a table to someone in another state. To ship it, you need an e-Way Bill with details like what you're sending, how many, the cost, and the invoice number.

If you make the e-Way Bill and e-Invoice separately and there's a mistake in the info, like wrong quantity or price, or if they don't match, it's a mismatch. This can break tax rules, causing fines and delays.

Reasons for mismatches between e-way bill and e-invoice/invoice

The following are the possible reasons for mismatches:

Typing or Data Entry Errors: 

While typing the data for the e-way bill, you might make some typing errors. This is a common mistake for mismatches.

Fields Affected: Product description, HSN code, quantity, taxable value, and tax rates are prone to typing errors. A mistyped HSN code or incorrect product description can cause discrepancies between documents.

Miscommunication or Information Gaps: 

In a lot of businesses, different teams handle different documents. Usually, the sales team makes the E-Way Bill, and the finance team creates the Invoice Reference Number (IRN). Since different people are doing this, sometimes the information doesn't match up between the two documents.

Fields Affected: The quantity field, product description, and buyer details are areas where miscommunication can lead to mismatch. For instance, if the sales team confirms an order change but doesn't communicate this to the billing department, the e-way bill and e-invoice might show different quantities or product details.

Cases of Fraud: 

In some cases, there might be intentional mismatches to reduce taxes or for other fraudulent purposes.

Fields Affected: Taxable value and tax rate fields are typically manipulated in fraudulent activities to understate the value of goods or the applicable tax rate, leading to intentional mismatches between the e-way bill and e-invoice.

Update Delays:

Fields Affected: Changes in order details or corrections needed after the initial generation of documents can lead to mismatches if one document is updated (e.g., e-invoice) but the corresponding e-way bill is not, especially in fields like product description, quantity, and total invoice value.

Preventing Mismatches:

To prevent these mismatches, it's crucial for businesses to ensure accurate data entry, maintain clear communication within teams, update all documents promptly upon changes, and integrate systems effectively to sync data across documents. Regular audits and checks can also help identify and rectify mismatches before they lead to compliance issues.

What happens if there mismatch in e way bill and invoice/e-invoice?

If the details on your e-way bill don't match your invoice, it could cause some problems in the operations of your business.

Here's what could happen:

Transportation Delays: 

The goods might be stopped and held up by transport authorities for verification due to the mismatch in both documents. This can cause delays in delivery.

Penalties or Fines: 

If there is a mismatch of information, you could be imposed a fine by the authorities. 

The reason is simply because a mismatch might represent that you're trying to skip out on taxes, which isn't good. 

These fines can really hurt your business. Basically, it's all about making sure every business plays fair and pays what they owe in taxes.

Increased Scrutiny: 

Frequent mismatches might flag a business for increased scrutiny from tax authorities, leading to more audits or checks in the future.

Can We Change Invoice Number in E-Way Bill?

Think of the e-way bill as a stamp. Once you put a stamp on a paper, you cannot update or change the stamp. You will have to take another paper. Similarly, the invoice number cannot be changed in an e-way bill. You will have to make a new one.

Need to Mention IRN in E-Way Bill

When we, as a business owner, make an e-invoice for any product that we are shipping, we get an Invoice reference number (IRN). While making this e-Way bill, we should include this number. It is for the reference of the invoice and helps you to keep a track of everything.