Industry concerns prompt GSTN to defer proposed e-way bill enhancements

The proposed August 1 rollout has been put on hold after businesses sought more time to modify ERP systems, update databases and test compliance processes

The Goods and Services Tax Network (GSTN) has put on hold planned enhancements to the electronic way bill (e-way bill) — originally set for August 1 — following industry concerns over technology and business processes.

 

The bill is an electronic document generated for the movement of goods above a specified value under the GST regime.

 

The GSTN, in an advisory issued on Wednesday, said taxpayers need not make changes to their systems based on the earlier advisories and must wait for further communication.

 

The proposed changes, announced through advisories issued on June 9 and June 17, were intended to help the government better track the movement and delivery of goods under the GST regime. They required businesses to provide the Ship-to Goods and Services Tax Identification Number (GSTIN) in transactions where the buyer and the delivery location are different. The GSTN had also proposed a voluntary facility to close e-way bills after goods are delivered. Detailed frequently asked questions (FAQs) on the changes were issued on July 2.

 

The GSTN said all advisories relating to the proposed enhancements, along with the FAQs, will be withdrawn from the GST portal.

 

Prashanth Agarwal, partner at PwC India, said the decision gives businesses time to prepare for the changes.

 

“The proposed changes require modifications to companies’ enterprise resource planning (ERP) systems, customer databases and business processes, which need adequate time for implementation and testing. The GSTN’s decision to defer the rollout reflects its willingness to engage with industry concerns. Going forward, certain validations, particularly in Bill-to/Ship-to transactions where the billing and delivery locations may have the same GSTIN, should be reconsidered after wider industry consultation. A transition period of at least three to six months would help ensure smooth implementation,” he said.

 

The proposed voluntary e-way bill closure facility reflects the government’s focus on capturing data on the actual delivery of goods. “Companies should nevertheless use this additional time to strengthen their processes, as such a requirement could become mandatory in the future,” said Agarwal.

 

Industry groups had sought more time to implement the changes, arguing that businesses would have to modify their ERP systems, update customer databases and undertake extensive testing before the rollout. They had also raised concerns over practical issues such as collecting Ship-to GSTIN details, commercial confidentiality and compliance challenges arising from the proposed validations.