In 2023, the logistics market in India was worth $282.3 billion. As per recent studies, it is expected that by 2032, the market could grow to $557.4 billion
The e-way bill system was introduced in India on April 1, 2018. This system significantly reduced paperwork and tax evasion. Earlier, businesses used to transport goods first and then report the details to the government later. This used to happen at regular intervals.
Later, with the introduction of the e-delivery note, the law required businesses to inform the government before they started moving goods in bulk. This change allowed authorities to track the movement of goods more effectively.
However, some businesses still found it difficult as they needed to get several printouts of the required documents. This increased their paperwork and compliance burden.
In response, the government made further improvements and introduced the e-way bill system. It proved to be a game changer for the logistics industry in India as it reduced transit times and eliminated the need to halt at checkpoints.
Want to understand in detail how the e-way bill system helps the transporters? In this article, let’s first check out the various e-way bill rules and then learn how this system helps.
E-way bill rules for transporters
In 2023, the logistics market in India was worth $282.3 billion. As per recent studies, it is expected that by 2032, the market could grow to $557.4 billion at an average growth rate of 7.85% per year (from 2024 to 2032).
To support such a huge industry, the government launched the e-way bill system to ensure smooth transportation of goods. Also, it launched some e-way bill requirements so that the transporters can remain compliant. Let’s check them out:
1. Changing vehicles during transit
If a transporter needs to shift goods from one vehicle to another during the journey, they must create a new e-way bill (in the prescribed format “EWB-01”) before making the change.
2. Short-distance transport (Less than 10 km)
If goods are being transported from the transporter’s place to the business location and the distance is less than 10 kilometres, the transporter does not need to provide details of the vehicle used for this short trip.
3. The case of bulk deliveries
If multiple consignments (shipments) are being delivered together in a single vehicle, the transporter can list all the individual e-way bill numbers in a consolidated e-way bill (in the prescribed format “EWB-02”) before the goods start moving.
4. When the sender has not created an e-way bill
If the sender (supplier) has not generated an e-way bill, the transporter must create EWB-01 based on any of the following documents:
- Invoice
- Delivery bill
- Supply challan
However, please note that this rule applies only if the total value of goods exceeds Rs. 50,000.
5. Using RFID for tracking
In some cases, the government may require certain transporters to install a special tracking device based on RFID (Radio Frequency Identification Device) technology on their vehicles.
The e-way bill must be linked to the RFID device before moving the goods. This allows authorities to track them more easily.
How does the e-way bill system support transporters
The e-way bill system makes transportation of goods cheaper and faster. Let’s check out its various advantages:
1. Less paperwork
- Transporters do not need to carry different documents for each state when moving goods.
- A special tracking device (RFID) in the vehicle keeps track of consignments automatically.
- Drivers don’t need to carry printed copies of the e-way bill because it can be checked electronically through the RFID device.
- This reduces the compliance burden and the risk of losing documents.
- The e-way bill system has reduced the number of checkpoints on highways and at state borders.
- Now, the transport vehicles are not required to halt at checkpoints for physical verification of documents.
- Due to reduced waiting times, businesses have saved substantially in fuel costs.
- This has particularly supported the margins of high-frequency sellers active on online marketplaces.
- E-way bills can be generated online through the EWB portal - www.ewaybillgst.gov.in
- The process is simple and user-friendly.
- Using the portal, businesses can easily create their e-way bills.
- In the future, some version updates are expected that will make the system simpler and more secure.
2. Faster transportation
3. Easy to create e-way bills
Conclusion
The e-way bill system has significantly transformed the logistics industry in India. Particularly, it has:
- Reduced paperwork
- Lowered administration costs
- Minimised delays at checkpoints
The system also allows for real-time tracking of goods through the installation of RFID-based tags on the transport vehicles. Such monitoring helps all the stakeholders like, the government, banks, NBFCs, and recipients of goods.
