An Electronic Way Bill (E-Way Bill) is an important document that is needed for the authorised movement of goods within India that are valued at more than Rs. 50,000. This document is mandatory under the Goods & Services Tax (GST) regime, and is crucial in helping the smooth functioning of goods transport within and across state lines in India.
Understanding the procedures associated with E-Way Bills is critical for businesses such as online marketplaces that deal with the sales of goods as well as for transporters who are seeking to be GST compliant. One of the more important procedures pertaining to E-Way bills that needs to be understood is that of cancelling E-Way Bills. You may need to cancel an E-Way Bill if the transportation is not taking place, or if the consignment details are incorrect. Read on to understand the five steps that you need to take to cancel an E-Way Bill. ensuring that you stay compliant with regulations.
Step 1: Determine whether the E-Way Bill is eligible to be cancelled
The first step in cancelling an E-Way Bill is to figure out whether the bill is even eligible for cancellation. An E-Way Bill can be cancelled if it has been generated but the goods mentioned in the bill have either not yet been transported at all or not transported as per the details provided in the document. It is important to note, however, that this cancellation must be done within a time period of 24 hours of generating the bill provided it has not been verified by any officer. It is also important to know that an E-Way Bill may only be cancelled by the generator of the said bill, and not by any third party.
Step 2: Login to the E-Way Bill system
To proceed with the cancellation, access the E-Way Bill system. This is generally done through the GST portal, in which you will need to log in using credentials such as your GSTIN and its associated password.
Step 3: Select the E-Way Bill to cancel
Once you’ve logged in, navigate to the ‘E-Way Bill’ menu, where you will find a list of all E-Way Bills generated under your GSTIN. Browse through this list to locate the bill you wish to cancel. Please make sure that you double-check the details of the bill before proceeding to cancellation to ensure that you’re cancelling the correct document.
Step 4: Initiate the cancellation process
After selecting the appropriate E-Way Bill, you will find an option to ‘Cancel’. Click on this button. You will need to select a reason for the cancellation from a drop down menu. It is important to provide the correct reason, as this information is logged and can be audited by tax authorities.
Step 5: Confirm the cancellation
Once the reason is submitted, you will need to confirm the cancellation. After confirmation, the system will process your request, and the status of the E-Way Bill will be updated to ‘Cancelled’. It’s advisable to keep a record of the cancellation, which you can download as a PDF or print directly from the system. This record will serve as proof of the cancellation and might be required for future reference or audits. It is important to remember that after being cancelled, it is illegal to use the same E-Way Bill once again.
Conclusion
Cancelling an E-Way Bill is a straightforward process if done within the stipulated time frame of 24 hours and by following the correct procedures. It is designed to ensure that businesses can rectify mistakes or adjust their plans without facing unnecessary penalties. Understanding and adhering to the guidelines for E-Way Bill cancellation is a step towards maintaining compliance for a business, which is viewed as a positive when securing financing from institutions such as banks and NBFCs.
