Daily Archives: May 20, 2022

20
May

What is the difference between COD and prepaid orders?

Categories eCommerce Author By Parceldeck

Cash on Delivery or COD is a popular method of payment for internet shoppers. When there is an emergency, this can be a life-saver, but there are several reasons why you should choose the prepaid option instead. It is good for you and India’s economy too.

As there is no need for authentication, you can complete prepaid orders quickly. Your pre-paid order makes a significant contribution to long-term economic growth.

What is Cash on Delivery or COD?

Difference between COD and Prepaid

One of the most popular methods of payment for online purchases in India is cash on delivery (pay on delivery). Most customers like receiving and viewing the merchandise before paying for it and COD payment has made this possible.

Cash on Delivery allows the consumer to pay for the product when it arrives rather than in advance.

What are Prepaid orders?

In prepaid orders, the vendor handles the shipping costs. The buyer or the receiver of the goods accepts full responsibility for the items once they arrive at their destination.  

The buyer pays for these orders in advance.

Why do people choose to opt for the COD option?

  • They may not be able to make payments online.
  • People don’t trust internet vendors.

Why has COD become so popular in India?

Difference between COD and Prepaid

The cash-on-delivery option is boosting e-commerce in India. As a result, it is a popular option for customers who lack the means to pay for their purchases online.

What is the procedure for COD orders?

A customer places an order on the website and specifies a delivery location.

Instead of paying for the goods at the time of purchasing them, the buyer selects the option to pay at the time of delivery.

The confirmed order will come with an invoice from the seller.

An employee of the seller or supplier picks up the shipment and delivers it to the customer’s address.

The delivery agent accepts cash or a credit card as a payment option from the customer. 

The logistics partner receives the COD payment and the amount gets deposited in the account. 

After taking out the handling fee, the seller receives the amount.

ecommerce in india

Can you refuse to pay COD or Cash on Delivery?

If you’ve chosen to pay by COD or cash on delivery, you may be able to decline the delivery in most situations. Any other payment method would necessitate a conversation with the seller to determine the return of the product.

What Are the Advantages and Disadvantages of Cash on Delivery?

Difference between COD and Prepaid

The main advantages of COD are, 

  • When it is about COD for businesses, the payment term is shorter, and there is no delay when it comes to receiving cash. This basically protects businesses from the danger of not receiving payment from a consumer for goods. 
  • Consumers benefit from COD since it allows them more time to pay for the goods delivered. 
  • Cash on delivery permits purchasers who do not have access to credit to make purchases that they would not be able to do otherwise.
  • The payment time is shorter with COD than with other types of payment.
  • Cash on delivery helps with cash flow and planning.
  • You will be safe from online fraud that could happen while making payments.
  • Customers who do not have credit can purchase products with COD.
  • There is no need to be dependent on cards for payment.

The disadvantages of Cash on Delivery are, 

  • There is a higher possibility of refusing goods during delivery with COD. 
  • Buyers may find it more difficult to return things if they have already paid for them at the time of delivery. 
  • The costs that courier companies charge for cash on delivery orders could be more. 
  • COD has a greater chance of delivery refusal.
  • Returning things can be expensive for sellers who do not have a return infrastructure or support system in place.
  • It may be difficult for buyers to return things that do not fulfill their expectations.
  • The seller could face losses when the product is returned without payment.

What are some benefits of prepaid orders?

These are the advantages of prepaid orders,

  • The majority of e-commerce companies now use phone calls or text messages to verify the authenticity of COD orders.  There are many delays and additional costs because of this.
  • This is one reason why prepaid orders are much easier to handle.
  • Since the customer must pay with currency notes in order to use cash on delivery, the infection risk is increased and due to covid, this should be avoided.
  • Certain pin codes, particularly those in outlying areas, may not support COD deliveries. States that don’t have cash on delivery are still receiving deliveries of pre-paid purchases. 

Parceldeck is one of the best shipping aggregators in India. It supports many courier partners and handles both cash on delivery orders and prepaid orders.

  • In order to ensure that the money is received by the shipping partners and returned to the seller, safety procedures are required.
  • The vendors and the economy bear the additional weight of cash on delivery orders. Sellers must pay additional cash on the delivery collection fee to shipping partners for each order.
  • A package returns to the warehouse when the order is not delivered. To put it another way, this puts pressure on the profit margins of your business.
  • Online retailers may be able to pass the savings on to customers by cutting prices or spending more on product and packaging and employee well-being if these fees are decreased.
  • There are exclusive incentives, loyalty awards, and more offered.

So make sure that you use your debit card, credit card, net banking, UPI, or any other prepaid means to pay for your next order. 

You and the entire economy as a whole will be able to benefit from this. 

Bottom Line 

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Ecommerce and online businesses have extended the reach of products to other sectors and provided lots of options for customers to select from. 

They can choose between COD and prepaid orders based on the best fit for them. This can help make an educated choice while you help the economy as well.

20
May

What is an e-Way Bill and How to generate one easily?

Categories Uncategorized Author By Parceldeck

The GST council mandated the introduction of the e-Way bill on 1st April 2018 for the transportation of goods from one place to another. 

Since then, both sellers and transporters have been using the e-Way bill. Although many people are still unsure of what an e-Way bill is and how to generate one. 

Thus, all the answers to your question are in this article, so keep reading to learn more about the e-Way bill.

What is an e-way bill?

What is an e-Way Bill

An e-Way Bill is an electronic way bill that is necessary for the movement of goods in case the value of the goods is greater than Rs.50,000.

The bill is generated using the GSTN portal, and it is required for every registered taxpayer, along with the goods transferred.

For example, if you are a seller and you need to transport your goods from Bhopal to Gujarat and the value of your goods exceeds Rs. 50,000, you will need to generate an e-way bill. Without an e-way bill, you will not be able to transport your goods.

When is an e-Way Bill required?

Following are the reasons why e-Way bill is required:

  • When there is Interstate or Intrastate movement of goods for the reason of supply or other than supply.
  • Goods value exceeding Rs. 50,000.
  • Due to inward ‘supply’ from an unregistered person     (the one who is not registered under GST).

As a result, e-Way Bills for all these types of movements must be generated on the common portal. 

Who should generate an e-Way bill?

  • Registered Person: Every person registered under GST is required to generate an e-Way bill on the occasion of transportation of goods.

  • Unregistered Person: If a seller who is not registered under GST is supplying the goods, the buyer or receiver of those goods should generate an e-Way bill.

  • Transporter: If the supplier has not generated an e-Way bill the transporter carrying goods should generate one.

ecommerce in india

When do you not need an e-Way bill?

  • Mode of transport is non-vehicle – If the mode of transport is non-vehicle or goods are not transported by a car, truck, or any vehicle e-Way bill is exempted.

  • Transportation of empty cargo containers – If a supplier transports empty cargo containers they won’t need an      e-Way bill.

  • Transportation of goods by Customs – If the Custom (CBIC) department of India transports any goods from one place to another. 

  • Movement of goods under Ministry of Defence – If goods are transported to or from the ministry of defense,        e-Way bill is not required.

  • Goods exempted from the e-Way bill as per state/ territory rule – Every state and territory has its own GST rules. Therefore, goods that are free from GST according to their states do not require an e-Way bill.

Validity of e-Way Bill

An e-Way bill always has an expiration date, which is determined by the distance traveled by the goods. Here’s a chart to help you understand.

Type of conveyance Distance Validity of EWB 

(e-Way Bill) Over Dimensional cargo Less Than 20 Km 1 Day Every additional 20 Kms  Additional 1 Day Other than Over Dimensional cargo Less Than 100 Km 1 Day For every additional 100 Kms Additional 1 Day

  • For Over dimensional cargo – If cargo is bigger in size than normal cargo, the validity of an e-Way bill for 20 Kms would be 1 day. But if the distance is increased then for every extra 20 Kms the validity will increase for 1 more day. 

  • For other than Over dimensional cargo – If cargo is of regular size, the validity of an e-Way bill for 100 Kms would be 1 day. But if the distance is increased then for every extra 100 Kms the validity will increase to 1 more day.

Therefore, the validity of the e-Way bill can be extended also. The validity can be extended up to 8 hours before the expiry time and 8 hours after its expiry time. 

Also, the reason code for the extension, and a description of the reason, must be entered to extend the validity.

Documents Required to Generate e-Way Bill:

Here is the list of mandatory documents required to generate an e-Way bill: 

  • Registration on the e-Way bill portal.
  • Invoice/Challan/Bill related to the consignment of goods must be handy.
  • If the mode of transportation is by road, Transporter ID and Vehicle Number are required.
  • If the shipment is by rail, air, or ship, the transport document number and date on the documents are needed. 

All these documents must be available for registration and e-Way bill generation.

How to generate an e-Way Bill?

There are 3 methods of generating an e-Way bill:

  • Online
  • Through SMS
  • By e-Invoicing

Here is a step-by-step guide to generating e-Way bill online.

Step 1: Register on e-Way bill system –

 To register, go to ewaybillgst.gov.in and click on Registration. 

Image Credit: ewaybill.gov.in

Enter the GSTIN pin and Captcha code then click on “Go”.

Image Credit: waybill.gov.in

Step 2: Login on the e-Way bill system –

Go to the Login option. Enter the Username, Password, and Captcha code, and Click on ‘Login’.

                                                   Image Credit: ewaybillgst.gov.in

Step 3: Generate new e-Way Bill:

Once you have logged in successfully, Click on generate new e-Way bill option. 

Step 4: Fill the form:

Fill the following fields in the form.

Image Credit: ewaybill.gov.in

  • Transaction type – If you are a consignment supplier, select ‘Outward.’ If you are a consignment recipient, select ‘Inward.’

  • Sub-type: Select your desired sub-type. 

The following subtypes appear when the Outward transaction type is selected:

Image Credit: cleartax.in

The following subtypes appear if the transaction type is set to Inward:

Image Credit: cleartax.in

  • Document Type: Select one of the following if it is not listed: invoice, bill, challan, credit note, bill of entry, or others.
  • Document Number: Enter invoice/document number.
  • Document Date: Fill out the invoice, challan, or document’s date. The system does not allow you to fill a future date. 
  • To/From: Select whether you are a supplier or a recipient in the To / From section.

                                  Image Credit: ewaybillgst.gov.in

  • Description of the product:
  •   HSN Number
  •   Quantity, Unit, and Value/ Taxable Value
  •   CGST and SGST or IGST tax rates (in percent )
  •   If a Cess is charged, mention the rate  (in percent )

 

  • Transporter information: Select the mode of transportation (road, rail, ship, or air) and the distance (in kilometres). 

Image Credit: ewaybillgst.gov.in

Then enter Transporter name, Transporter ID, Transporter Doc. No., and Date and distance(in km).

Step 5: Submit the form: After filling the form, the last select ‘Submit‘. If there are any errors, the system will check the data and display an error message.

Otherwise, your request will be processed, and an e-Way bill with a unique 12-digit number will be generated. The generated e-Waybill looks like this:

You can then print and carry the e-way bill whenever you transport your goods. You just have to click on the ‘Print EWB’ option under ‘e-Waybill’ and enter your e-Way bill 12 digit number and click on ‘Go’.

EWAY bill

 Image Credit: ewaybillgst.gov.in

There you have it, with these easy steps you can generate an e-Way bill.

Conclusion:

The generation of an e-Way bill is necessary as per government guidelines. So, you must follow that and carry an e-Way bill whenever you transport goods. Hope this article helps you. For more such informative content you can read our other blogs on the Parceldeck website.

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