E-way bill generation has emerged from improved compliance and stringent enforcement by GST field formations, arriving at an all-time high of 10.54 crore in August 2024, according to Goods and Services Tax Network (GSTN) information. This is the sixth occasion since the e-way bill was introduced in 2018, and the fourth consecutive time this fiscal year, that monthly generation has surpassed 10 crore.
No relation is there between the generation of e-way bills and GST collections, the surged generation can positively impact tax revenue. The government will announce the GST collected for goods purchased and services utilized in August on October 1, when it releases the monthly tax collection statistics. The rise in e-way bill generation, as a key economic indicator, indicates a boost in economic activity.
An e-way bill is an electronic document mandated for the movement of goods valued at more than Rs 50,000, following Rule 138 of the CGST Rules, 2017. It guarantees that taxes on goods being transported are settled and is vital for monitoring the movement of goods throughout India.
Enhanced Field Enforcement Drives Improved Compliance
Experts praise this record of e-way bill generation to the active enforcement by the GST field formations and mobile squads, that have been seizing vehicles with missing, expired, or discrepant e-way bills.
The same has led to a rise in the GST pertinent cases being filed in High courts, with differences in the e-way bills being a major cause. Numerous cases awaiting resolution by the GST Tribunals, which have yet to be established, are anticipated to focus on discrepancies related to e-way bills.
A taxpayer said that various matters might get solved in the taxpayer’s favour, and the need for a pre-deposit of 200% of the tax amount causes substantial financial stress. The specialist highlighted that rigorous enforcement measures in the field are the main reason for the rise in GST e-way bill generation and strong compliance.
Robust Economic Demand Signals Resilience
Certain analysts suggest that the peak generation of e-way bills is a sign of robust demand within the Indian economy. According to a tax professional, this rise is indicative of enhanced compliance alongside the successful monitoring efforts undertaken by the government.
The rise in India’s HSBC Manufacturing PMI, combined with other factors, emphasizes the economy’s strength, supported by ongoing domestic consumption and a boost in manufacturing and trading activities.
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E-way bill generation seems to remain influenced by both enforcement measures and broader economic trends as India continues its economic recovery.
