Change of Vehicle in E-waybill: Understanding the Process

Changing the e-waybill vehicle consists of a completely defined procedure by the tax department. Starting from choosing a valid reason to actually change the vehicle carrying goods, there are a lot of things you should be aware of. Authorities have determined several compliances and legal considerations to be maintained while updating the electronic waybill information.

In this blog, we have every essential factor regarding the e-waybill vehicle change required by businesses and transporters. Under this process, all the changes are made in the “Part-B” of the bill. Let’s begin the guide by defining the structure of the electronic waybill. 

What is the structure of E-Waybill? 

An electronic waybill is divided into two basic parts. Listed below is a clearly defined structure, properly showcasing everything.

Part – A

Part – B

1. 5 Simple Steps involved in changing the vehicle in an E-waybill

Step 1: Log Into E-waybill Portal: Visit the e-waybill portal and open your account using the credentials.

Step 2: Navigate to the “Update Vehicle Number” Option. Under the e-waybill menu, opt for the “Update Vehicle No” option.

Step 3: Fill Your E-waybill Details: Use the e-waybill number or generated date to select the bill that you would like to update. Tap on the “Go” to proceed further.

Step 4: Opt for E-waybill and Enter New Vehicle Details: Now, you will have the list of e-waybills for your transshipment. Select the one you want to update. Enter a new vehicle number and select the validated reason to change the vehicle from the drop menu. It includes force majeure events, vehicle breakdowns, and more. You are also allowed to add any additional remarks.

Step 5: Submit Updates: Tap on the “Submit” button to update your e-waybill with new details of new vehicles.

Also Read: E-Waybill Generation Process: Step-By-Step Guide

2. Legal considerations for processing a change of vehicle in an E-waybill

1. Pre-defined Timeframe: You’re legally required to update your e-waybill processes within a stipulated time frame set up by tax authorities. Make sure not to make any delays, as it can lead you to a potential fine or penalty. To make any changes regarding vehicles, your specific states would have to set up certain rules and regulations that must be followed by all the transporting businesses.

2. Consistent Transportation Documents: Information filled within e-waybill forms of changing vehicles should be consistently maintained along with other transshipment documentation, including lading bills, invoices, etc. Inconsistency within these processes may lead to legal issues.

3. Cross-Border Considerations: When transiting goods across borders, you must be aware of additional legal considerations or requirements set up by customs authorities of the country. It is essential for your business to stay safe from any legal proceedings.

4. Following GST Rules and Regulations: Always make sure that your business accurately follows the GST (Goods and Services Tax) rules and regulations. For any transportation business, it is essential to follow the legal considerations for processing a change of vehicle in an e-waybill. Moreover, some states have their own specific requirements regarding processes related to these bills, and you have to adhere to those compliance regulations.

5. Valid Reason for Change: To change your vehicle, you need to have a valid reason along with the supporting documents. For instance, vehicle breakdown, route change due to unforeseen reasons, etc., are some of the potential reasons for changing the vehicle. You must have the official supporting documents like a new report or breakdown bill to demonstrate your authenticity.

6. Maintain Accuracy of Documentation: Verifying legal requirements for authorization and authenticity of e-waybill is mandatory. It will allow you to legally change your vehicle during the transshipment process. However, you might also need to have approval from relevant tax authorities and comply with their specific regulations. Only this can help you smoothly complete your e-waybill-related processes of changing vehicles.

7. Update Responsibility and Multiple Vehicles: If you’re utilizing multiple vehicles during transportation, you are required to specify the details for each conveyance. You have to include the vehicle number, quantity transported, and the respective “from-to” place. However, you have to ensure that the total quantity of goods must match the sum transported across all vehicles.

3. Compliance obligations when initiating a change in E-waybill vehicle details

1. Use of Digital Signature: Certain e-waybill systems have a requirement for a digital signature for the establishment of authenticity. However, you have to make sure that the sign is legally compliant with the regulatory requirements. Plus, it should also be recognized by the concerned GST officials.

2. Notify Relevant Authorities: When you proceed with your initiative to change the e-waybill vehicle details, you are required to notify the relevant tax authorities. The medium of notifications widely depends upon the specific jurisdiction. Therefore, you are obliged to notify the GST officials regarding the initiative you took to avoid any non-compliance.

3. Record Retention: You are obliged to properly maintain the records of the modified e-waybill and any of its supporting documents for a required period of time. The retention of these records is essential to comply with future audits and investigations.

4. Authorization and Authentication: As per compliances, you are required to have proper authorization and authentication of the e-waybill modification. You should know the accurate rules and regulations to obtain approval and authentication determined by relevant GST authorities.

5. Educating Personnel: As a reliable transportation business, the personnel involved in your process of changing e-waybill vehicles should be appropriately informed about the compliance obligations. You can conduct several training and awareness programs to avoid any nuisance or non-compliance during the process.

6. Audit Trails and Logs: In many state-specific e-waybill systems, you’re required to audit trails and logs of modification. You should maintain the accuracy and accessibility of these records; they may be needed during any future compliance audit.

7. Timely Update: One of the most essential compliance obligations when initiating a change in e-waybill vehicle details is to be aware of making timely updates. Time frames vary with the specific jurisdiction, and you have to make modifications within what is required; however, if you fail to meet the time required.

4. Documentation requirements for vehicle change procedures in E-waybill

1. Original E-waybill: It acts as a base document to help you change your e-waybill vehicle. All the initial information of the consignment consists in this document, such as details regarding goods, consignor, consignee, and original (primary) vehicle.

2. Documented Reason for Vehicle Change: You’re required to provide a clear reason for changing your vehicle. It includes vehicle breakdown, transshipment, etc. Make sure to also submit the documented proof for your reason, such as the lading bill, invoice, repair bill, and more.

3. Vehicle Registration Certificate (RC): A copy of the registration certificate of the new vehicle may also be required to validate the change in vehicle details. It allows the authorities to have all the essential information regarding the ownership and legal status of the vehicle.

4. Driver’s Details: You must also submit the information regarding the new driver along with their identification copy. It helps the GST officials to make sure that the transshipment process is conducted in an authorized way.

5. Notify Authorities (optional): You may also need to notify the relevant tax authorities about the change in e-waybill vehicle details. It is especially required in the cross-border movement. Certain documents and forms are required to be submitted as per the specific rules and regulations of each state or country.

6. Audit and Trails: Do not forget to maintain the records of any audit trails or logs during the e-waybill vehicle changing process. It will help you in the near future with any compliance audits or inspections.

5. Reporting obligations for the updated E-waybill with the new vehicle

1. General Reporting: While changing the e-waybill vehicle, all the parties involved during transshipment, including the consignor, consignee, transporter, and relevant authorities, should be well informed and agree. You can communicate with them through email, communication, logs, or any other documented form.

2. Generate Transhipment Document: If you have to change the e-waybill vehicle during the transportation process, TD (Transhipment Document) needs to be generated. It consists of essential details such as the reason for the vehicle change, details of both vehicles, and the number of goods moving. You must upload the TD over the e-waybill portal and share it with the main involved parties.

3. Vehicle Breakdown or Multiple Vehicle: E-waybill change due to breakdown requires you to report to the relevant authorities within 24 hours of the timeframe. You can either submit your report online or in a physical form based on what’s suitable within your state. However, if you’re maintaining multiple vehicles, you must update the distance traveled by each vehicle to the authorities at the required portal. It allows the GST officials to track your consignment accurately and prevent any discrepancy.

4. Submit the updated e-waybill: You are obliged to report the updated e-waybill vehicle details to the relevant authorities. There should not be any error in the accuracy of new information. Also, make sure to follow the timeframe specified by your state properly.

5. Electronic Data Interchange (EDI) Compliance: All of your updated e-waybill information must comply with Electronic Data Interchange (EDI) standards. It might be required within your state, so you should check it. EDI standards ease the electronic exchange process of transferring information between different parties across your supply chain.

6. Challenges faced in the process of changing the vehicle in E-waybill

1. Technical Challenges: E-waybill systems are completely functional upon technology. Thus, technical glitches or downtimes are a part of it, which widely hinders the vehicle changing process. You often find issues like server errors, connectivity problems, and software bugs. A business is required to tackle these challenges while updating the vehicle information.

2. Knowledge Gaps: There are certain complex scenarios for changing e-waybill vehicles. It includes dealing with multiple states, vehicle changes during expected hours, or specified commodity requirements. To solve this challenge, you must have a deeper understanding of regulatory requirements. Talking to any expert or properly referring to official guidelines can help you professionally tackle this challenge. Moreover, it also takes care of staying compliant with state-specific rules and regulations.

3. Limited Timeframes: Certain jurisdictions have set up their strict time frames for updating e-waybill-related information. You are required to follow these deadlines, especially during any urgent update. Avoiding these deadlines may result in penalties or fines for your business. In fact, it might even lead to you not getting your update done on time.

4. Digital Signature Issues: They are especially used for purposes related to e-waybill updates. Here, validity and recognition are a general issue for digital signs in a supply chain. You have to make sure that all the involved parties should have an appropriate online signature infrastructure. Because it will significantly handle the confidential and vulnerable part of your transshipment and its processes. And it is a big challenge.

5. Communication Delays: All the parties involved during transit, including the consignor, transporter, and consignees, must be accurately informed regarding the e-waybill vehicle change. You must ensure that there are no potential miscommunications or delays, as they can significantly impact the transportation process.

6. Compliance with Specific Rules: Some rules and regulations regarding e-waybill vehicle change also vary with different jurisdictions. You are required to comply with these requirements, especially if they consist of any complexity or get frequent updates. It is a very challenging process to properly maintain these compliances, as every state has certain different compliance regulations.

7. Exemption considerations for specific scenarios requiring vehicle change

1. Short Distance Transportation: Vehicles transiting within 10 km or city limits are generally expected and relaxed from various requirements. Before sending the consignment, you must check the limit of your state. Moreover, if your transpiration’s origin and destination are in the same state, you will be exempted. Here, the distance doesn’t matter then.

2. Temporary Movement of Conveyance: There are certain jurisdictions that provide exemptions or released requirements for the temporary movement of vehicles for repair or maintenance purposes. You may be expected only for a limited period of time. Moreover, you also have to submit the relevant documents to get certain exemptions.

3. Force Majeure Events: If you have to change the vehicle due to any unforeseen reason, like a natural disaster or strike, then you may get exemptions or leniency in compliance requirements. GST officials understand the conditions of transporters and thus provide the required relaxation.

4. Transhipment During Exempted Hours: The transportation can be expected or relaxed if you’re operating them during exempted hours, i.e., nighttime. They are generally non-operational hours and can have certain benefits. Make sure to properly check out your state’s specified timing and goods to claim any possible exemption.

5. Agriculture Produce and Livestock: Exemptions and relaxed requirements are generally offered over the transportation of agricultural produce, perishable goods, or livestock. Tax authorities make these benefits available to support the agriculture sector. Therefore, if you’re transiting the goods mentioned, you must apply for the exemptions to your relevant GST officials.

6. Specific Vehicle Types: Handcarts/pushcarts are generally not required to even generate an e-waybill while moving goods. Hence, it frees you from handling anything related to vehicle change. Moreover, government-specific vehicles might also be expected from any requirement related to e-waybill vehicle change. It also depends upon the purpose and regulations of conveyance.

Also Read: Frequently Asked Questions: Clearing Doubts on E-Waybill Exemptions

8. Best practices for smooth and efficient E-waybill vehicle change processes

1. Preparation and Awareness: You must be accurately aware of the state’s e-waybill regulatory requirements and revisions. Gather all the essential knowledge regarding vehicle change procedures and exemption considerations. It will prepare you for any future actions required to change e-waybill vehicles.

2. Centralized Record Keeping: A business needs to have a centralized system to maintain all the processes related to e-waybills. From older to modified versions of the bill, this organized system will allow you to operate and manage everything from a single dashboard. Hence, you can apply for the e-waybill vehicle change within a few clicks. This genuinely makes the process smooth and efficient.

3. Proactive Action and Documentation: Transportation businesses are full of uncertainties, and it is required to pre-plan certain scenarios, including e-waybill vehicle change. You also have to put the procedure in place. Make sure to also correctly keep the essential documents such as repair bills, transshipment receipts, and communication records, as they will be required for any future audits or inquiries. You can also keep records of these documents in a digital format, as it is far easier to access and retrieve. Moreover, it also has higher security and backup options.

4. Promptly Initiate Changes: Once you are aware of the requirement to change the vehicle, you should promptly start working on the changes required. The earlier you start taking action, the more up to you will be for the timeframes. Hence, it will give you more time to practice the smooth e-waybill vehicle change process.

5. Timelines and Communication: To smoothly perform your e-waybill vehicle change process, you must submit your vehicle change request within the stipulated time frame. It will also allow you to avoid any penalties or fines. Also, make sure to properly inform all the involved parties regarding your e-waybill vehicle change. In fact, you should even document all these communications, including emails, phone logs, and written confirmations.

6. Technology and Accuracy: There are various technological tools and solutions available for e-waybill-based transportation. You can utilize e-waybill portal integrations or mobile apps to streamline any relevant updates and processes. Technology-based solutions help transporters maintain Accuracy across information regarding vehicle and goods quantities. All you have to ensure is that your ERP system is up-to-date. It will kill any compliance-related issues and give you a smooth and seamless experience.

7. Train Personnel: In a transportation business, there are several personnel involved in the supply chain. It also has the professionals appointed to initiate the vehicle change process. If they are appropriately trained employees, then the process automatically becomes efficient. A single person can not run an entire business. Therefore, you should regularly provide training programs for your personnel to maintain a seamless process.

Also Read: Best Practices For E-Waybill Validity Management: Timely Renewal And Monitoring

9. Audit and verification of compliance with vehicle change rules in E-waybill

1. E-waybill Related Details: There are certain e-waybill-related details that every business has to fulfill. Listed below are some of the major ones that will be checked during the audit and verification done by relevant authorities.

• Information’s Accuracy You must have accurately provided the e-waybill-related details during vehicle change, as authorities will check updated details with the original one. If they find any discrepancies in the registration number, type of vehicle, or any other information, it will be a red flag for your business.

• Time Frame: Every state has a differently specified timeframe for updating e-waybill-related information, and you’re required to follow it.

• Justification Reason: GST officials precisely check the validity of your reason for changing the vehicle. You have to submit and keep the records of supportive documents like repair bills, transshipment receipts, communication records, etc.

• Quantity Consistency: If you have used multiple vehicles during transportation, authorities will ensure the total quantity of the goods matches the sum across all the vehicles. Finding any discrepancies within the quantity may lead your business to indicate tax evasion or non-compliance.

2. Documentations: During audit or inspection, tax authorities obviously verified the required documents. But they also check out certain other details.

• Availability and Completeness: The availability of documents like invoices, lading bills, breakdown reports, and transit documents is one of the crucial factors. They should be readily available whenever required. Keeping the records in digital format will allow you to access them at your fingertips.

• Authentic and Validity: Tax officials will make sure that your documents are authentic. Any forged documentation or fabricated evidence may lead you to face severe penalties.

3. Adherence to Regulatory Compliance: While reviewing your business transactions, appointed auditors will ensure that you appropriately align with the GST regulatory requirements. Therefore, you should make sure to know and understand your state-specific regulations for e-waybill-based transportation processes properly.

4. Communication and Records: Authorities often check the below-mentioned considerations during the inspection. 

• Internal Records: Sometimes, auditors can also request you to check your company’s internal records related to the transportation and e-waybill vehicle change. It includes details like dispatch logs and communication records. Make sure to keep your internal records sorted and clean. 

• Communication Logs: In cases of changing the vehicle due to communicating with tax authorities, all of your logs and records will be adequately reviewed. They will ensure that you appropriately meet the interaction and protocol adherence.

5. Audit Trails and Logs: Every business is required to create and maintain audit trails and logs regarding e-waybill-related transportation operations. Auditors precisely check those logs as well. Make sure that you have maintained the proper transparency and traceability within the required report. Moreover, you also have to mention any electronic waybill-related updates, including vehicle changes.

10. Legal consequences of non-compliance or errors in the vehicle change process

1. Penalties and Fines: Non-compliance during the e-waybill vehicle change process may lead you to certain fines and penalties imposed by tax authorities. It includes late filing, inaccurate information, or inconsistent documentation. The amount of fines can vary from hundred to lakhs based upon the severity of the violation.

2. Confiscation of Goods: If you’re not appropriately compliant with the regulatory requirements during the change of e-waybill vehicle, it can lead you to the confiscation of goods. Authorities only free up the goods until the compliance issues get resolved. It can disrupt your transportation business.

3. Blacklisting and Suspension: Businesses persistently violating the e-waybill regulations may lead your business to be blacklisted by the tax authorities. In this case, you won’t be legally allowed to generate an e-waybill for any of your future transshipment processes.

4. Prosecution and Level Proceedings: Making any serious non-compliance with the e-waybill generation or vehicle change process might lead your business to face criminal prosecution. It is generally the case for international fraud, tax evasion, or repeated non-compliance.

5. Increased Scrutiny and Audits: Transportation businesses found the frequent non-compliances have to face increased scrutiny from the authorities. In these cases, GST officials closely monitor your business and each of its activities.

6. Loss of Input Tax Credit: During audits and non-compliance with e-waybill rules and regulations, certain states may result in the loss of ITC. It significantly impacts the finances of the business, as you won’t be able to claim for the taxes paid.

To Wrap Up !

E-waybill is essential documentation when it comes to transiting goods exceeding the value of Rs. 50,000 from one place to another. Sometimes, transporters or businesses are required to change the pre-decided vehicle for the security or timely delivery of goods. This blog is filled with all the necessary information required to change the vehicle.

Frequently Asked Questions (FAQs)

• Can we change the vehicle number in the e-waybill?

E-waybill is divided into two main parts: Part A and Part B. You’ll find the vehicle number optional within the first part. However, you have to fill it in the second part, which is free to be modified or edited if you have permission. There is an option to even update the vehicle number over the documentation.

• How do you change the transporter on an electronic waybill?

Here’s a step-by-step process to change your e-waybill transporter:

• Use your credentials to log into the official portal.  
• On the left side of the screen, you will find a menu. 
• Choose the “Update EWB Transporter” option by scrolling down a little.

• How can I add a new car to my e-waybill?

First, you are required to generate the electronic waybill with the required source and destination as per the document or invoice. In this way, complete the first leg towards moving your consignment up to the transshipment process. Next, you will be able to opt for the “Change to Multi-vehicle” option and update the bill-required details.

• What is the penalty for the wrong vehicle number on the e-waybill?

According to Section 129 of the Goods and Services Tax, 2017, any defaulter will have to pay INR 1099+GST for making a potential mistake, indicating intentions to evade the taxes. Here, you won’t have to face any such penalties for minor mistakes like typographical errors as per the words of Allahabad High Court.

• Can you change the vehicle number?

Yes, you can change your vehicle number. Take the NOC (Non-Objection Certificate) from the RTO of your district or where the vehicle is registered. Next, you are allowed to proceed further and take another number. This entire process may take around one month.

• Is it required to have an e-waybill for the consignment’s value below Rs.50,000?

Yes, you are required to carry an electronic waybill during the transshipment process if the value of the goods exceeds the limit of Rs. 50,000. In fact, it is one of the legal compliances with the regulatory requirements.

• What is the e-waybill in case of a change of vehicle?

An electronic waybill is an official document that allows businesses to transit their goods. All the essential details related to consignment, vehicle, and other parts of the supply chain are mentioned in the bill. While changing the vehicle, you are required to update the information in this official document. Go into “Part-B” of the bill to enter the details of the new vehicle within the original validity period.

• Can we change the transporter details in the e-waybill?

Yes, you can change the details related to transporters in the EWB. However, your bill must be within the validity period and not expired. To change the details, you just have to log into the official portal and navigate the option for updating the transporter details.

• When is the e-waybill mandatory?

If you’re transiting goods of value more than Rs. 50,000, generating an e-waybill is mandatory. Otherwise, it is an optional case for other transshipments. Moreover, you are also required to carry the bill while goods are in transit, as it is a legal compliance.

• How do I change my e-waybill to multiple vehicles?

Use the source and destination as per the respective document/invoice to generate the electronic waybill. It is one of the foremost steps towards changing the e-waybill to multiple vehicles. After that, you just have to select the “Change to Multi-vehicle” option and update the necessary information.

Prarabdh Gupta Freelance Content Writer & Strategist

Prarabdh Gupta is a finance content writer with 4+ Years of Industry experience in simplifying complex finance terms. He crafts captivating and engaging content around mutual funds, insurance, banking, real estate, taxation, and financial planning. He has completed his graduation from Jiwaji University, Gwalior.

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