➔ The validity period of consignment notes is limited since 1.1.2025
As a German company doing business with India, you need to prepare for changes in the e-way bill system. From January 1, 2025, new regulations for electronic waybills will come into force, affecting the transport of goods and digital security.
The e-Way Bill system is an important part of the Indian Goods and Services Tax (GST) system and aims to digitize and simplify the transportation of goods in the country. Waybills are created digitally on the GST portal ewaybillgst.gov.in created.
Key points of the innovations in e-waybills:
➔ Time restrictions on the validity period of e-way bills:
1. E-Way Bills can only be used for Documents generated that are not older than 180 days For example, from 1 January 2025, e-Way Bills can no longer be generated for documents dated before 5 July 2024. Until 31 December 2024, there was no restriction on the age of the source documents for generating an e-Way Bill, as long as the document was valid and correct at the time of the transaction.
2nd extensions are limited to a maximum 360 days from the original creation date. An e-way bill generated on January 1, 2025 can therefore only be extended until December 25, 2025. The previously existing option of unlimited extension of validity, e.g. due to unexpected delays in the supply chain, no longer exists.
➔ Multi-factor authentication (MFA)
The MFA has now been introduced in stages for registration on the GST portal:
- From 1 January 2025: Mandatory for companies with annual total turnover (AATO) over 20 crore rupees
- From February 1, 2025: Mandatory for companies with annual turnover of more than 5 crore rupees
- From April 1, 2025: Mandatory for all taxpayers and users
What should you do as a German company?
The above changes may require adjustments to your business processes:
1. Optimization of invoicing and logistics processes to meet the 180-day deadline
Speed up invoice creation and processing to ensure documents are no older than 180 days when e-way bills are required. Prioritize older documents to ensure they are submitted on time.
2. Implementation of compliance software to monitor e-way bill deadlines
For example, link the e-way bill generation to your ERP system to automatically create e-way bills as soon as a delivery is planned or use digital reminder functions.
3. Improving the supply chain to avoid delays
Take the opportunity and examine your logistical challenges, which can be diverse in India. Where do things often go wrong? Where can processes be optimized?
4. Training of employees and partners regarding the new regulations
Inform and train relevant employees about the new deadlines and processes for timely generation of e-way bills.
5. Adaptation of IT systems for multi-factor authentication
Implementing multi-factor authentication may require adjustments to your IT systems.
Do you have questions about tax issues in India? Do you need support in optimizing your business processes? Take advantage of our 20 years of experience in these areas. Feel free to contact us without obligation. We look forward to hearing from you.
