What Are the Common Challenges in E-way Bill Generation

An e-way bill is a mandatory document generated on the official portal – ewaybillgst.gov.in. This website is managed by the Government of India.

As per the Goods and Services Tax (GST) rules, it is required when the value of transported goods is more than Rs. 50,000. 

The bill of the prescribed EWB-01 format contains important information like:

• Names, addresses, and GSTIN numbers of both the sender (consignor) and the receiver (consignee).
• The details of the goods being transported, such as their type, quantity, and value.

To remain compliant, such an e-way bill must be generated before the goods are transported. However, while generating an e-way bill, businesses face several challenges. They lead to inaccurate bill generation which leads to penalties and scrutiny. 

Want to know them beforehand? In this article, let’s check out some common challenges faced by businesses when generating e-way bills. 

9 common challenges faced in the e-way bill system

When you know the mistakes others are making, you can avoid them and remain compliant. Below are the nine most common challenges faced by businesses while generating e-way bills:

1. Providing incorrect or incomplete details

One of the biggest mistakes businesses make when generating e-way bills is submitting wrong or incomplete information. Generally, this includes errors in:

• Names
• Addresses
• GSTIN (Goods and Services Tax Identification Number)
• Other key details of the consignor (sender) or consignee (receiver). 

Please note that if any detail is incorrect, the e-way bill might get rejected. This will cause delays in delivery and even penalties. Therefore, you must avoid this by carefully checking all the details before submitting the bill.

2. Errors in company information

Mistakes in the company’s details, such as the GSTIN, address, or contact information, are also common. These errors again lead to delays and penalties. In some extreme cases, it can even lead to confiscation of goods during transit. 

To prevent these problems, businesses must ensure their registration details are accurate and match the records on the e-way bill portal.

3. E-way bills generated by third parties

When a third party (like a transporter, consignor, or consignee) generates an e-way bill, there is a chance they might leave out critical information, such as the GSTIN. 

These missing details:

• Cause problems with record-keeping, and

• Create mismatches in tracking the movement of goods

Due to such discrepancies, it becomes harder for businesses to reconcile their records later. When records are not accurate, it also becomes tough to get business loans from banks and NBFCs, as they rely on financial records to assess creditworthiness.

4. Using a single e-way bill for multiple invoices

As per the GST rules, every invoice or challan must have its own separate e-way bill. Businesses cannot combine multiple invoices into one e-way bill. If this rule is not complied with, it can create legal problems and cause delays in transporting goods. 

Therefore, always generate an individual e-way bill for each invoice to avoid complications.

5. Entering vehicle numbers in the wrong format

When filling out Part B of the e-way bill, the vehicle number must follow a specific format. If the vehicle number is entered incorrectly, the e-way bill may get rejected. This again leads to delays in goods delivery and attracts fines. To avoid this, double-check the format of the vehicle number before submission.

6. Not providing a transporter ID

The transporter ID is an important part of the e-way bill and helps track the movement of goods. If the transporter ID is missing, the e-way bill gets rejected.

Therefore, businesses must ensure the transporter ID is correctly entered on the EWB portal while generating an e-way bill. 

7. Improper use of bulk generation facility

The e-way bill system has a feature that allows businesses to generate multiple e-way bills at once (bulk generation). This saves time and is particularly beneficial for high-frequency sellers, like those active on online marketplaces.

However, if this feature is misused, it can lead to mistakes and generate incorrect e-way bills. This causes penalties and might attract notices from the GST department.

8. Using incorrect User IDs

Each e-way bill is linked to a specific user ID (the business or person generating the bill). If the wrong user ID is used, the e-way bill might be linked to the wrong transaction or party. 

This creates confusion and makes it hard to track goods. Hence, ensure that you are using the correct user ID while generating the bill.

9. Not tracking the validity period of e-way bills

E-way bills are only valid for a certain period. This validity depends on the distance the goods are travelling. If this validity period expires while the goods are still in transit, the bill becomes invalid. 

Now, this will prompt the authorities to stop the movement of goods and in extreme cases confiscate them. To avoid such issues, businesses should:

• Monitor the validity of their e-way bills and

• Extend them if needed

Conclusion

An accurate and valid e-way bill ensures that the goods are transported smoothly without physical verification at checkpoints. However, recently it has been observed that businesses are facing several challenges in generating e-ways, such as:

• Entering incorrect details
• Using a single e-way bill for multiple invoices
• Failing to track the validity period and more.

These errors lead to delays, penalties, or even confiscation of goods. Hence, to stay compliant, businesses must ensure that they are entering only accurate information and following the right procedures. By avoiding these common mistakes, businesses can also avoid legal issues or scrutiny from the GST department.