E-way bill generation touched an all-time high of 10.48 crore in July, surpassing the previous high of 10.35 crore in March this year, GST Network (GSTN) data showed.
Although GSTN has not given any reason for the record rise, it could be attributed to many reasons, including improvement in consumption as well as compliance. Although there is no straight co-relation between e-way bill generation and GST collection, the former could have some positive impact on collection. Tax collected for goods consumed and services availed in July will be known on September 1, when the government releases monthly data.
This is the fifth time since the introduction of the e-way bill in 2018 and third successive time in the current fiscal when generation has crossed 10 crores in a month. 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.
Experts feel the present trend reflects a notable increase in consumption across various sectors, with heightened economic activity driving the need for transportation and logistics services. The sustained growth in e-way bill generation also points towards the effectiveness of technology-driven scrutiny and compliance mechanisms. With advancements in digital infrastructure and regulatory frameworks, businesses are becoming more vigilant in adhering to documentation requirements, thereby, enhancing the overall compliance levels,” he said.
Indication of higher e-way bill generation could also be seen in context of the rise in core inflation (headline inflation minus inflation of food and fuel) for the month of July when it rose to 3.4 per cent from 3.1 per cent. This is being seen as one indicator of demand revival.