October recorded an all-time high of Rs. 10.3 crore (US$ 1.2 million) in e-way bill generation
- IBEF
- November 8, 2023
The amount of e-way bills, or electronic permits, that companies produce to move products between states and within states increased to an all-time high of Rs. 10.3 crore (US$ 1.2 million) in October, surpassing the previous record of Rs. 9.34 crore (1.1 million) that was announced in August. This is mostly due to increased compliance procedures and consumption spurred by holidays, which are predicted to considerably increase November's Goods and Services Tax (GST) collection.
Since e-way invoices are required for shipments valued at more than Rs. 50,000 (US$ 600.42), these serve as a prescient window into the patterns of supply and demand within the economy. Macroeconomic indicators take a while to reflect this. The steady pace of e-way bill creation in October should be evident in the October GST collection figures, which will be mirrored in the data for November.
The increase in collections would give the center's receipts the necessary cushioning to meet the desired fiscal deficit. E-way bill generation had slowed a bit to Rs. 9.2 crore (US$ 1.1 million) in September. Despite this, GST collection had surged to Rs. 1.72 trillion (US$ 20.65 billion) in October—the highest monthly mop-up since the Rs. 1.87 trillion (US$ 22.45 billion) reported in April.
The IT backbone of GST, the GST Network, reports that e-way bills of Rs. 3.73 crore (US$ 0.45 million) for inter-state shipments and Rs. 6.29 crore (US$ 0.76 million) for products moved inside states were created in October.
According to Ms. Gunjan Prabhakaran, Partner and Leader of Indirect Tax at BDO India, the replenishment of stocks by brands and the purchases made by the people in the supply chain to meet the anticipated Diwali demand was one of the reasons for the increase in e-way bill generation. She further listed increased scrutiny by revenue authorities and better compliance by taxpayers as reasons.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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