New Delhi: Businesses across India have received significant relief after the Goods and Services Tax Network postponed the new e-way bill requirement that was scheduled to take effect from August 1.
The decision will benefit traders who had sought additional time to understand the proposed system, update their software and train employees before its implementation.
Proposed Change
Under the new rule, the 'Ship-To GSTIN' system was to be introduced for generating e-way bills. It would have required businesses and transporters to provide delivery-related information more accurately and follow stricter data-entry requirements.
If goods were being delivered to a person or organisation registered under GST, the recipient’s Goods and Services Tax Identification Number would have to be entered while generating the e-way bill.
For a buyer who was not registered under GST, businesses would need to enter the URP, or Unregistered Person, code. An e-way bill could not be generated without providing the required and accurate information.
Traders Concerned
Trade organisations had expressed concern over the limited preparation time available before the proposed August 1 rollout. They said several small and medium-sized businesses were not fully prepared to comply with the new system.
Businesses and transporters would need time to understand the revised procedure, modify their billing and logistics software, and train staff responsible for generating e-way bills.
Industry bodies had therefore urged the government and GST authorities to postpone the implementation by at least three months. They argued that a transition period was necessary to prevent technical difficulties, documentation errors and possible disruptions in the movement of goods.
Existing System
Following the postponement, the new requirement will not come into force from August 1. Businesses can continue generating e-way bills under the existing arrangement until further notice.
However, the government may announce a revised implementation date later. Traders have been advised to familiarise themselves with the Ship-To GSTIN system and begin preparing their technology and staff.
Early preparation could help businesses avoid compliance difficulties whenever the revised rule becomes effective.
