GST

GST E-Way Bill System: Major Flaws Fixed for Tighter Compliance

The government has upgraded the GST E-Way Bill system to close long-standing loopholes that allowed duplicate bills, non-filers, and cancelled GSTIN holders to move goods illegally. New system-driven checks such as unique invoice lock, filing restrictions, GSTIN validation, and a 180-day invoice limit now ensure stronger, automated compliance for all businesses and transporters.

The government has upgraded the digital E-Way Bill system to shut down major loopholes previously used for tax evasion. Responding to issues highlighted by the Comptroller and Auditor General (CAG), several system-level checks are now hard-coded to ensure only compliant businesses can generate and use E-Way Bills.

E-Way Bill Update

Old Problems vs. New Fixes

Old Problem (The Flaw)	New Rule (The Fix)	Who is Affected?
Duplicate E-Way Bills were generated for the same invoice.	Unique Invoice Lock: The system now blocks multiple E-Way Bills for the same invoice number and date.	All Businesses & Transporters
Non-filers of GST returns were still generating E-Way Bills.	Filing Check: E-Way Bill generation is blocked if the taxpayer has not filed the previous three GST returns.	Non-Compliant Businesses
Cancelled GSTIN holders could still generate bills.	Registration Check: The system now disallows generating bills by or against any cancelled or suspended GSTIN.	Cancelled/Suspended Businesses
Old invoices were used to generate fresh E-Way Bills.	180-Day Limit: E-Way Bills cannot be generated for invoices older than 180 days.	Any Business Using Old Invoices

Immediate Action for Businesses and Transporters

Strict Deadlines: E-Way Bills can only be cancelled within 24 hours if goods were not moved.
No Part A Edits: Invoice details cannot be changed once submitted. Only vehicle or transporter details in Part B can be updated.
Carry Documents: Transporters must carry a valid invoice and the E-Way Bill copy or number during movement.

The Bottom Line

These system-driven corrections make the E-Way Bill mechanism stronger and more aligned with GST compliance standards. The message is simple: digital checks are now tight, and businesses must stay compliant with return filing, invoicing and reporting to avoid automatic blocks and penalties.

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Krishna Gopal Varshney

An editor at apnokaca

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Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.

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