The logistics industry is developing rapidly, and this speed is expected to grow under the Goods and Services Tax, because of implementation of the E-way bill. It has reduced checkpoints, warehouse consolidation and save transporter money and time as well. In this article, we are going to discuss the impact of E-ways bills on logistics.  EBM or E-bill is a unique document which is electronically generated by the seller for a specific consignment of goods.

The main motto of EBM is to enable the taxman to track the movement of goods and thereby make sure that the state, where the sale takes place, gets the tax revenue. An e-way bill is generated on the GST Network portal for goods worth more than Rs. 50,000.

Advantages of E-way Bill

Transparency in Supply Chain

Technology is bringing clarity in the supply chain and making some fantastic changes in the daily operations of transports. E-way bill and tracking system will make the chain flexible and transparent.

EWB is Deemed Accepted

It is the fact that a recipient can be accepted or rejected. But, when it comes to E-way bill, it is deemed approved if there is no activity by the recipient within 72 hours, then the E-way bill will be available on the NIC portal.

Documentation Process Get Shorter

Now there will be no need for state-wise documentation for the movement of goods. The transporters get benefit from the establishment of the RFID device in the vehicle used to transport consignments regularly. Now, the in charge of the car does not need to convey physical copies because the device is attached to the vehicle and the e-way bill can be easily verified and mapped by the device.

Tax Filling Start-up is Getting Gain

A lot of logistics and tax filling start-ups anticipate massive profit from the rollout of away bills to track interstate movement of goods.


Disadvantages of E-way Bills

Multiple Bills for a Single Shipment

E-commerce retailer uses different modes of transport to make sure that the product delivers to a customer on time. Because a new e-way bill is generated every time, the transport mode changes the company has to generation number of proposals for a single shipment.

Infrastructure Cost Get High

Smaller transporters can see the increment in costs as they have to gear up to invest in IT infrastructure and also hire IT professionals who can generate e-way bills. ‘

Single Technical Stoppage cans Stop Whole Business Process

In India, the e-way bill was implemented on 1 February 2018 for almost all people of a country. Because goods above Rs. 50,000 cannot take place without a corresponding e-way statement, so, any technical issue regarding GST Network could cause a complete stoppage of business.

Last Verdict

There are some bed and good impact of an e-way bill on logistics. Meanwhile, it is hoped that the e-way bill will drive business to the formal sector. GATI said that in the first quarter of FY19 the adoption of E-way bill brought vague promise for organised logistics and Goods transport revenues rose by about 9.6%.  

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