News Excerpt:
e-WAY bill generation touched 10.32 crore in May, which is the second all-time high generation. Data from GSTN shows, since the introduction, this is the third occasion, when an e-WAY bill has crossed the 10 crore mark. An all-time high was recorded in March 2024, when generation was 10.35 crore.
What is an e-Way Bill?
- An e-WAY bill is an electronic document generated on a portal, evidencing the movement of goods. Transporters must carry it for any consignment exceeding Rs 50,000.
- It includes details such as the consignor, consignee, transporter, origin, and destination of the goods. It also indicates whether tax has been paid for the moving goods.
- It is a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information before the commencement of the movement of goods and generates an e-way bill on the GST portal.
Implementation:
- This system for inter-state supplies of goods was implemented across India from April 1, 2018.
- The National Informatics Centre (NIC) is responsible for developing, hosting, and managing the entire e-Way Bill System.
- It is generated on the GST portal as per the requirements of the CGST Act, 2017, and Rule 138 of the CGST Rules, 2017.
- Section 68 of the CGST Act, 2017 mandates carrying specific documents for consignments over a certain value.
Benefits of e-Way Bill:
- It is a single and Unified e-Way Bill to facilitate faster Inter and Intra-State movement of goods for the whole country.
- Eliminates the need for state boundary check-posts due to the digital interface.
- Fully online and enabling ‘Paperless’ movement to track and monitor the movement of goods across various states.
- Improve service delivery with quick turnaround time for the entire supply chain and provide anytime anywhere access to data/ services.
- Minimal physical interaction with the concerned departments and hassle-free movement of goods.
- From the department's perspective, it helps to ensure that goods being transported comply with the GST Law, track the movement of goods, and check tax evasion.
About the high numbers of the e-Way signify:
There are multiple reasons cited for higher generation. While the 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.
- It is a strong indicator of robust supply chain movement and sustained demand for goods.
- It reflects a consistent and healthy flow of goods across the country, suggesting that businesses are maintaining or increasing their inventory levels in response to strong consumer demand.
- This high volume of e-way bills indicates economic stability and growth, reflecting active trade and commerce crucial for overall economic health.
- 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.
- Moreover, the sustained growth in e-way bill generation also points towards the effectiveness of technology-driven scrutiny, and compliance mechanisms implemented by regulatory authorities.
