Businesses Can Digitally Record Delivery of Goods Through E-Way Bill Portal
As of now, the e-way bill framework primarily was tracking initiation and transit of goods movement, but it was lacking a formal mechanism to digitally record completion of delivery.
New Delhi: The government on Thursday has said that the goods and services tax or GST registered businesses can now digitally record delivery of goods for which an e-way bill has been generated on the portal. “This closure feature would create a clearer end-to-end transaction trail and strengthen logistical accountability,” it said.
As of now, the e-way bill framework primarily was tracking initiation and transit of goods movement, but it was lacking a formal mechanism to digitally record completion of delivery. “A new e-way bill closure facility has been introduced in the e-way bill system on a voluntary basis to enable closure of the e-way bill once delivery of goods is completed,” the GSTN said in an advisory to taxpayers.
Under GST, a person carrying goods valued over Rs 50,000 has to carry an e-way bill. The document is required to be generated from the GST Portal by a GST-registered person or transporter before transporting the goods. “E-way bill may be closed by either supplier, or recipient, or transporters involved in the transaction, or driver or any authorised person whose mobile number has been provided for closure,” the GSTN said.
It further said that the changes are being implemented in the e-way bill system with a view to strengthening data integrity, improving traceability of goods movement, and enabling system-driven closure of transactions. It also asked taxpayers, transporters, ERP/API integrators, and other stakeholders to initiate necessary system readiness measures.
When the goods and services tax (GST) was introduced on July 1, 2017, physical check posts across states were abolished, marking a major structural reform, significantly improving free movement of goods and reducing transit delays. Experts, however, are of view that the introduction of the e-way bill closure facility marks an important evolution in GST’s digital compliance architecture and businesses with large supply chains should begin evaluating operational readiness early.
“While currently introduced as a voluntary mechanism, there is a strong possibility that GSTN may gradually move towards making such closure a mandatory compliance step. If that happens, it could materially strengthen invoice-to-delivery reconciliation and help address concerns around circular trading, round tripping, duplicate invoicing, and fictitious movement of goods, said AMRG Global Managing Partner Rajat Mohan.