To all the business owners out there, there's an important update we want to gear up for. From March 1, 2024, we can't issue e-way bills without an e-invoice or an IRN for our business-to-business (B2B) and business-to-export (B2E) transactions.
We need to make sure our invoices and e-way bills are aligned to save business from any non-compliance. This article talks about why those mismatches among e-manner bills and e-invoices appear. It's important to understand this to avoid any trouble.
Let us assume you sell a table to someone in another state. To ship it, you need an e-Way Bill with details like what you're sending, how many, the cost, and the invoice number.
If you make the e-Way Bill and e-Invoice separately and there's a mistake in the info, like wrong quantity or price, or if they don't match, it's a mismatch. This can break tax rules, causing fines and delays.
The following are the possible reasons for mismatches:
While typing the data for the e-way bill, you might make some typing errors. This is a common mistake for mismatches.
Fields Affected: Product description, HSN code, quantity, taxable value, and tax rates are prone to typing errors. A mistyped HSN code or incorrect product description can cause discrepancies between documents.
In a lot of businesses, different teams handle different documents. Usually, the sales team makes the E-Way Bill, and the finance team creates the Invoice Reference Number (IRN). Since different people are doing this, sometimes the information doesn't match up between the two documents.
Fields Affected: The quantity field, product description, and buyer details are areas where miscommunication can lead to mismatch. For instance, if the sales team confirms an order change but doesn't communicate this to the billing department, the e-way bill and e-invoice might show different quantities or product details.
In some cases, there might be intentional mismatches to reduce taxes or for other fraudulent purposes.
Fields Affected: Taxable value and tax rate fields are typically manipulated in fraudulent activities to understate the value of goods or the applicable tax rate, leading to intentional mismatches between the e-way bill and e-invoice.
Fields Affected: Changes in order details or corrections needed after the initial generation of documents can lead to mismatches if one document is updated (e.g., e-invoice) but the corresponding e-way bill is not, especially in fields like product description, quantity, and total invoice value.
To prevent these mismatches, it's crucial for businesses to ensure accurate data entry, maintain clear communication within teams, update all documents promptly upon changes, and integrate systems effectively to sync data across documents. Regular audits and checks can also help identify and rectify mismatches before they lead to compliance issues.
If the details on your e-way bill don't match your invoice, it could cause some problems in the operations of your business.
Here's what could happen:
The goods might be stopped and held up by transport authorities for verification due to the mismatch in both documents. This can cause delays in delivery.
If there is a mismatch of information, you could be imposed a fine by the authorities.
The reason is simply because a mismatch might represent that you're trying to skip out on taxes, which isn't good.
These fines can really hurt your business. Basically, it's all about making sure every business plays fair and pays what they owe in taxes.
Frequent mismatches might flag a business for increased scrutiny from tax authorities, leading to more audits or checks in the future.
Think of the e-way bill as a stamp. Once you put a stamp on a paper, you cannot update or change the stamp. You will have to take another paper. Similarly, the invoice number cannot be changed in an e-way bill. You will have to make a new one.
When we, as a business owner, make an e-invoice for any product that we are shipping, we get an Invoice reference number (IRN). While making this e-Way bill, we should include this number. It is for the reference of the invoice and helps you to keep a track of everything.
If the records at the e-way invoice does not match, the consequences may be severe. you could be fined up to Rs 10,000 or the amount of the tax you tried to keep away from, whichever is greater.
Vehicles carrying goods which are stuck without the ideal e-Way bill also can be seized.
How can the invoice value on my e-way bill be changed?You cannot change the invoice value on the e-waybill. You will have to make a new one.
Can the invoice date and eway bill date be different?Yes, the dates for generating the invoice and the e-way bill can differ. Accordingly, the document dates can be different.
Can we update the e-way bill if there is a mistake or wrong entry?No, we cannot update the e-way bill. We will have to make a new one.
I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more
Starting from March 1, 2024, businesses are required to align e-way bills with e-invoices to avoid non-compliance issues. Mismatches can result from typing errors, miscommunication, fraud, or update delays, leading to penalties, transportation delays, and increased scrutiny. Changes to the invoice number in an e-way bill are not possible, requiring the creation of a new bill, and including the Invoice Reference Number (IRN) in e-way bills is essential for tracking purposes.
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