The increase in the E-Way bill could be promoted by better compliance as more companies choose to formally inform transactions. | Photo credit: Kesavan An@Chennai
Indicating that the generation of very high-year-end commercial activities (EWB) increased a 20 percent higher in March to reach more than 12 million rupees for the first time since its introduction in 2018. Experts express cautious optimism on the E-Way bill.
Data related to GST compilation in April will be made public on May 1. Since the introduction of GST in 2017, April collections always establish a new record. While the collections crossed ₹ 1 Lakh Crore for the first time in April 2018, established a new maximum of ₹ 1.13 Lakh Crore in April 2019. The collections affected by the COVID-19 pandemic in April 2020, but in April 2021, went to a record of ₹ 1.4 Lakh Crore. April 2022 saw a collection of ₹ 1.68 Lakh Crore followed by a new maximum of ₹ 1.87 Lakh Crore and ₹ 2.10 Lakh Crore in April 2023 and April 2024, respectively.
An E-Way bill is an electronic document generated in a portal, evidence the movement of goods. It also indicates that the tax for mobile goods has been paid. According to rule 138 of the CGST rules, 2017, each registered person involved in the movement of goods (which should not necessarily be due to the offer) or a consignment value of more than 50,000 (it can be Lerwer for the intraestatal movement).
Growth conductors
Explaining the reasons behind the EWB registered in March, Amit Baid, BTG Advaya Tax Chief, said it could be driven by a better way understanding, since more companies choose to report formally transactions. In addition, with March, the end of the financial year, often sees a natural peak as companies rush to close books and clarify inventories, even when real production or consumption have not at the same rate. “Better compliance and reports are important victories in themselves and feel the foundations for more sustainable income growth,” he said.
Sudipta Bhattacharjee, a partner of Khaitan & Co, said that the more than 20 percent plus the increase in the generation of EWB reflects economic activity with March 31, which is the end of the financial year, which leads companies to clean inventories and press more to the objectives of the financial year. The improved application against GST frauds that lead to general levels of general compliance would also have played a role. “This should have a positive correlation with the improved GST collections for March 2025, which will be reported in April,” he said.
Key indicator
According to Mrs. Mani, a partner of Deloitte, the generation of electronic invoices is a good precursor to the expected duration of GST’s collections per month and a greater generation of ES -way invoices would be a normal increase in GST’s collections. “A linear relationship between the percentage increase in the number of electronic invoices generated and the GST collections would not be possible since GST is based on the value of the invoices and is also affected by the services, which do not require invoice,”
Baid said E-Way’s highest invoices usually point out better GST numbers, but real test is sustainability. “If consumer spending is still warm in the midst of global uncertainty, this increase can be short or concentrated in some sectors,” he concluded.
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Posted on April 14, 2025