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E Way Bill Shifting the Landscape for The Transport and Logistics Industry

E-way bills are shifting the landscape for road transports and logistics from the date it was first implemented. Approximately 60% of the consignment moves using road transport and hence road is the most preferred mode of transportation. Let us see how e-way bills are shifting the landscape for roads and logistics industry.

A New Role for the Transporter?

Before the introduction of GST, the transporter’s role was limited to supplying goods to the destination. But after the implementation of GST and e-way bill, the transporter plays a new and a significant role in the supply chain. As per the new role, the transporter’s duty does not only ends on transporting the good but it now extends to e-way bills generation on the National Informatics Centre (NIC) portal, wherein, the transporter has to generate the e-way bill on the consignments valuing more than 50,000 INR to transport the goods beyond 10 km area. In a case, if an e-way bill is generated but goods are not supplied, then the transporter can cancel the e-way bill within twenty-four hours to avoid the consequence and penalties as prescribed under the law.

In the 14 day trial in Feb 2018, 11,581 transporters generated more than 28.4 lakhs e-way bills. The positive side of the e-way bill is that it becomes mandatory for the transporter to supply the goods within the validity to avoid the consequences. For instance, if the place of supply is 1000 km away from the location of a supplier then the e-way bill is valid for up to 15 days.

The Role of E-Way Bill Portal in the Life of a Transporter

Transporters have adopted this new technology that acts as a bridge that links the digital platform with the supply chain world. Moreover, with the introduction of e-way bill technology has brought higher transparency to the entire supply chain. In addition to this, the e-way bill has changed the daily activities of the transporter as now they have to take care of all the consignment and the expiry date of the e-way bill. Now using the e-way bill it is for the supplier, transporter and recipient easy to track the consignments as they flow through the supply chain.

Here are some examples that show how the e-way bill in the life of a transporter.

1. Inspection and Verification of Goods

It is important for the transporter to comply with the provision that says that a transporting vehicle must have a 400x300mm (Minimum) inspection window. This will help the verification officer would be able to verify the loads in transit. It must be noted that the consignment can be inspected once during the whole journey. Moreover, if a vehicle is stopped for more than thirty minutes by the inspecting officer then the transporter can raise this issue on the NIC portal in Form GST INS-4.

2. Acceptance or Rejection by The Recipient

The recipient has the power to accept or reject an e-way bill. Moreover, an e-way bill is deemed to be accepted if the recipient does not take any action within 72 hours after its availability on the NIC portal.

3. Multiple Consignments in One Vehicle

In a case, if a transporter is carrying multiple consignments in one vehicle then he/she must generate different e-way bill for each consignment on the NIC portal.

Moreover, he can also generate a consolidated e-way bill in a case if do not want to carry multiple consignments.

However, the recipients of the consignment can accept or reject every e-way bill on the NIC portal.

4. E Way Bill Generated But Goods Not Transported

In a case, if the transporter generates an e-way bill but does not transports the good then he must cancel the e-way bill within 24 hours.

Note: If the consignment is in transit or there is a change in the mode of transport then in such case the transporter does not have the power to cancel the e-way bill.

5. Change of Transporting Vehicle During Transit

If a transporter wants to change the mode of transport during transit then in such a case he has to generate a new e-way bill containing the revised details of the vehicle. This is the most common problem that a transporter face as there is always a probability of vehicle break down during transit.

The Bottom Line

E-way bill is playing a major part in the road and logistics industry as it is saving time and preventing late deliveries of products from one place to another. However, generating the e-way bill becomes a sweat breaking task when a transporter has to supply multiple consignments in multiple vehicle on one go. Considering this Masters India has created the E-Way Bill software that easily integrates with your current ERP and generates e-way bill through a single click. So, through this, we can conclude that e-way bills are shifting the landscape for the transport and logistics industry.