E-way bill Generation slips in April; GST Collection in May likely to be impacted

E-way bill (EBW) generation fell in April after reaching an all-time high in March. According to experts, this indicates a reduction in collecting for the month of May.

According to GSTN data, EVB generation was 8.44 crore in April, down from 9.09 crore in March. However, it is significantly more than the 7.52 crore figure from April of previous year. This means that generation slowed by 7.15 percent but was 12.23 percent higher than in April of last year. This year, April saw an all-time high in GST collection of 1.87 lakh crore, surpassing the previous April’s high of 1.68 lakh crore. Tax collection in April reflects the products and services purchased in March.

If the value of the items is Rs.50,000 or higher, an E-way bill must be generated. It is proof that tax has been paid on commodities transported from one state to another, or even from one city within a state to another. In the case of a combination of goods and services, EWB must be generated by providing codes for both.

EWB generation is typically high in March, but it has decreased to the following month this time. This occurred because corporations attempted to conclude the financial year on a high note by emptying inventory and starting the following financial year on a blank slate.

In February 2022, for example, EWB generation was 6.91 crore. It increased to 7.82 crore in March before falling to 7.52 crore in April. Similarly, EWB generation in 2023 was 8.18 crore in February, increased to nearly 9 crore in March, and then fell to 8.44 crore in April.