E-way bill generation hits fresh record of 156.21 million in October | Economy & Policy News

E-way bill generation in October surged 23.14 per cent year-on-year (Y-o-Y) to a record high of 156.21 million, compared with 126.86 million in the same month last year, according to data from the Goods and Services Tax Network (GSTN).

An e-way bill is an electronic document required under the Goods and Services Tax (GST) regime for the movement of goods worth more than ₹50,000. It contains details of the goods, consignor, consignee and transporter.

Sequentially, e-way bill generation rose 10.37 per cent from 141.53 million in September, which was the previous record. The latest numbers indicate a sharp increase in goods movement during the festive season.

According to Shivam Mehta, partner at Lakshmikumaran & Sridharan, last year, following GST rate rationalisation, there was some deferment of purchases and inventory adjustments in September, with sales and goods movement picking up towards the end of September and continuing through October.

“The record-breaking surge in e-way bill generation this October highlights a highly encouraging economic trend. Lower tax rates resulting from rate rationalisation have encouraged greater taxpayer compliance, bringing a larger share of businesses, particularly from the unorganised sector, into the formal tax net,” he added.

The sharp increase also reflects vibrant consumer demand and robust economic activity fuelled by the peak festive season across the country. GST reforms, improved compliance and buoyant festive demand are driving stronger formal economic growth, Mehta added.

Abhishek Jain, partner and national head of indirect tax at KPMG India, said the record growth in e-way bill generation in October reflected strong festive-season demand, increased movement of goods and robust business activity across the country. “This is a very encouraging indicator for GST revenue collections, and we can reasonably expect a healthy growth in GST revenues, reflecting the underlying strength and momentum of the Indian economy.”

The growth in e-way bill generation comes amid efforts by the government to make goods transportation easier and reduce compliance-related hurdles for businesses under the GST regime.

At its October 8 meeting, the GST Council proposed changes to curb routine checks of goods moving by road. Under the proposed framework, vehicles can be stopped only on the basis of specific information and with the approval of an officer of the rank of joint commissioner or above.

The changes also seek to restrict checks, detention and seizure to states where the supplier or buyer is based, keeping transit states out of the enforcement process. Confiscation of goods or vehicles in transit will no longer be permitted.