e-WAY bill generation touched 10.32 crore in May, which is second all-time high generation. Normally, May does not see much activities, still, higher numbers could be attributed to increase in demands for electronic items, and other cooling products.
Data from GSTN shows, since the introduction, this is the third occasion, when e-WAY bill has crossed the 10 crore mark. An all time high was recorded in March this year, when generation was 10.35 crore, while previous second all time high was 10.03 crore in October last year. Rise in e way bill generation likely to have some positive impact on GST collection.
An e-WAY bill is an electronic document generated on a portal, evidencing the movement of goods. It also indicates whether tax has been paid for the moving goods. As per Rule 138 of the CGST Rules, 2017, every registered person involved in the movement of goods (which may not necessarily be on account of supply) of consignment value of more than ₹50,000 (can be lower for intra-state movement), is required to generate an e-way bill.
There are multiple reasons cited for higher generation. While e -WAY bills have been long prevalent in the Indirect Tax space, yet under GST, the linkage with e-invoicing, and the moving squads enforcing implementation, have resulted in the unorganised movements, and corresponding supplies being brought under the GST net.
According to experts, higher generation, reflects a notable increase in consumption across various sectors, with heightened economic activity, driving the need for transportation and logistics services. Parag Mehta, Partner with N.A. Shah Associates said that the retail businesses across India registered growth in their sales in May’. Sectors specially consumer durables and electronics have shown increased sales resulting in increased movement of goods. There is also substantial increase in Exports and Imports during the month. “All these factors are contributing for increase in the e-way bill generation. The result of the same will be streamlining of various sectors and surge in GST collections,” he said.
Ashok Kumar Batra, Chair, Indirect Tax Committee, at PHD Chamber of Commerce and Industry (PHDCCI) feels the surge in e-way bills underscores the successful integration of technology and taxation systems. The real-time tracking and monitoring enabled by e-way bills enhance tax administration, curb tax evasion, and ensure the smooth flow of goods across state borders..
“The surge in e-way bills generally signals an increase in the supply of goods which will result in higher collection of tax. Nevertheless, historical data suggest that while an increase in e-way bills occurs, it does not directly correlate with a rise in GST revenue in the same proportion but certainly an indicator for increased tax collection,” he said