In October, the generation of E-way bills, which are electronic permits used by businesses for transporting goods within and between states, reached an all-time high of 10.3 crore, surpassing the previous record of 9.34 crore set in August.
This significant increase can be attributed to heightened consumption during the festive season and improved compliance practices. As a result, the collection of goods and services tax (GST) is expected to receive a further boost in November.
E-way bills are obligatory for consignments valued above Rs 50,000 and serve as an early indication of demand and supply trends in the economy. However, their impact on macroeconomic indicators is usually observed with a time lag.
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The sustained momentum in October’s e-way bill generation is anticipated to translate into higher GST collection figures for the same month, which will be reflected in the November data.
This boost in collections will provide the necessary support for the central government to maintain its fiscal deficit target.
While e-way bill generation had experienced a slight slowdown to 9.2 crore in September, GST collection surged to a remarkable Rs 1.72 trillion in October, marking the highest monthly collection since collection recorded Rs 1.87 trillion in April.
The GST Network, serving as the IT backbone for GST, reported that 6.29 crore e-way bills were generated for intra-state shipments, while 3.73 crore worth was generated for inter-state shipments in October.
A tax professional attributed the increase in e-way bill generation to consumer purchases and replenishment activities in the supply chain, driven by the anticipated demand during Diwali.
The expert also highlighted enhanced scrutiny by revenue authorities and improved compliance by taxpayers as contributing factors to the surge in e-way bill generation.
