Logistics are considered the backbone of online marketplaces. Timely delivery of goods not only supports business growth but also ensures customer satisfaction. In the e-commerce sector, most companies use two main strategies for logistics:
- In-house logistics: Companies manage deliveries themselves by building their own logistics systems.
- Third-party logistics (3PL): Companies collaborate with external logistics providers (like India Post).
Currently, the logistics market is evenly split. About 50% of logistics is handled in-house, while the other 50% relies on 3PL providers. In both these delivery modes, it is mandatory to generate an e-way bill if the value of transported goods exceeds Rs. 50,000.
This requirement reduces tax evasion and provides a clear tracking of goods. However, it adds several administrative tasks for e-commerce operators, such as Part B submission, validating GSTINs, upgrading technology, and more. These tasks require time as businesses need to constantly monitor to avoid errors and penalties.
So, what is the way forward? Will the e-way bill system be improved in the future? In this article, let’s see how this system is becoming more automated and efficient.
What does the future of e-way bill generation in e-commerce look like
The e-way bill system tracks the movement of goods. Gradually, it is becoming less complicated due to technological innovations and several positive measures launched by the government. Let’s check them out:
1. Auto-population of details in Part A
The e-way bill system is moving towards automatic integration with e-invoicing. For businesses with an annual turnover of Rs. 10 crore and above, there will be auto-population of details:
- When an e-invoice is created, details for Part A of the e-way bill (such as HSN code and value of goods) will be filled automatically using e-invoice data.
- Businesses only need to manually enter Part B, which includes transporter and vehicle details.
Moreover, the e-invoice portal will directly send data to the e-way bill portal. This will reduce errors and save time.
2. Stricter compliance and validation
The government has recently stated that for B2B transactions, companies must generate both e-invoice and e-way bills together. Whereas for B2C invoices, only an e-way bill will be sufficient.
Additionally:
- While generating an e-way bill, the GSTIN of the supplier will be checked to prevent fraud.
- Businesses using e-invoicing must include the Invoice Registration Number (IRN). For the unaware, it is a unique code for verifying the invoice’s authenticity.
3. Technological advancements
To help businesses, several new e-way bill software are emerging. These tools make compliance easier by provoking the following benefits:
- Instant e-way bill creation: Software allows quick generation of bills without delays.
- Automated data upload: Invoice details are automatically added to the system. This avoids manual errors.
- Bulk processing: The software allows for generating multiple e-way bills simultaneously. This makes the process even more efficient for large-scale businesses.
Conclusion
In the future, it is expected that the e-way bill system will become more automated and efficient. This is largely due to:
- Automatic integration of e-way bills with e-invoicing
- Stricter compliance rules
- Introduction of modern e-way bill software
These advancements will minimise errors and reduce the manual work of e-commerce operators. Also, it is expected that these changes will make companies more compliant and help all the associated stakeholders, like customers, 3PL providers, banks, and NBFCs.
