Impact Of E Way Bill On The Indian Logistics Industry

Advantages of E-way bill for the logistics industry

1. Easy to use – The E-way bill system is designed to make it easier for the users to generate the E-way bill. There are a couple of ways to generate the E-way bill –

b) E-way bills can be generated and canceled through SMS too

c) E-way bills can be generated and canceled via an Android app also, and via site integration through their proprietary APIs.

2. Avoiding tax evasion – By making the generation of e-way bills online, the user needs to enter all the information needed for consignments to move from one place to another. This includes both inter-state and intra-state movements. The government has put this system in place to ensure that transporters/consignors/consignees are not evading any GST collections which was the case earlier. Since everything is accounted for in the system, there is a foolproof process that prevents any tax evasion.

3. Shifting to a digital platform – With the introduction of the online platform, outdated systems have been eliminated. Making use of the efficiency of the online E-way bill system, redundancies have been eliminated by implementing tech-driven processes.

4. Ease of doing business – The E-way bill system reduces the amount of paperwork done because of rigid state rules. This makes inter-state business much easier and less complicated. The ease of doing business will give a boost to the overall business happening between the states of India. Consequently, states should see an increase in their revenues. Businesses are spending less time on paperwork and more on increasing their business reach. All of this will greatly contribute to the economy of the country.

5. Quick movement of consignment – The E-way bill facilitated the removal of check posts over highways and cross borders which resulted in ease of movement of goods.

6. Reduced logistics cost – E-way bill reinforces proper invoicing and hence reduces tax evasion. Since this will contribute towards the country’s overall revenue, the E-way bill is expected to reduce the overall logistics cost to GDP proportion, in the long run.

Disadvantages of E-way bill for the logistics industry

1. Accessibility to the infrastructure – Small transporters might not even have the access to the internet. The government has to make sure that even a small transporter in the remotest of areas has access to the internet and the E-way bill system.

2. Implementation timeline differences in different states – Not all states have implemented the E-way bill system. The system cannot be optimally used unless all states have implemented it. Deferring the implementation is making it underutilized and inefficient.

3. Multiple bills – A large number of bills are generated since several modes of transport might be used for the goods to finally reach their destination. Every shipment will have a large number of bills each time the mode of transport or vehicle is changed.

4. Delays in generating E-way bills – Many times fresh E-way bills have to be generated because of changes in orders, routes, or any other reason. This can potentially cause delay.