E-way bills grow nearly 19% to 122.65 million in May, shows data

E-way bills grew by nearly 19% YoY to 122.65 million in May, reflecting a strong increase in compliance and economic activity. This was the second-highest growth rate after March's record figures

The year-on-year (Y-o-Y) growth in e-way bills — electronic permits required for transporting goods across and within states — surged by nearly 19 per cent in May, compared with a 23.29 per cent growth registered in April, according to data from the Goods and Services Tax Network (GSTN). This is the second-highest growth after a record 124.5 million in March this year.

 

Sequentially, the number of e-way bills increased by 2.83 per cent in May, reaching 122.65 million, after a dip of 4.2 per cent in April to 119.26 million.

 

E-way bills are required to move goods worth more than ₹50,000 and are often used as an early indicator of demand and supply in the economy. These trends typically manifest in larger economic indicators after some time.

 

 

Intra-state e-way bills stood at 80.17 million in May, while inter-state e-way bills totalled 42.48 million during the month.

 

According to GSTN data, there are 15.2 million registered GST payers, with 6.19 billion e-way bills generated cumulatively so far.

 

The noticeable increase in the generation of e-way bills signals a significant improvement in compliance, indicating a stronger potential to reduce tax leakages, according to Abhishek Rastogi, Founder of Rastogi Chambers.

 

"Businesses have become increasingly cautious in issuing accurate e-way bills, especially in response to numerous instances where flying squads have intercepted vehicles and taken stringent action against non-compliance. Such proactive enforcement has prompted businesses to adhere more strictly to GST norms," Rastogi said. He further noted that these compliance-oriented mechanisms are instrumental in strengthening the overall GST revenue collection framework.

 

However, Rastogi also highlighted that there have been cases, some even reaching the courts, where perishable goods were subjected to manifestly arbitrary and unlawful actions.

 

“The GST Council must ensure that enforcement efforts are balanced and fair,” Rastogi added. “It is essential that genuine businesses are protected from undue hardship, and all measures must be taken to prevent actions that could be detrimental to legitimate trade.”

 

The Reserve Bank of India (RBI) cut the repo rate by 50 basis points on Friday and stated that private consumption, which drives overall demand, is performing well, helped by a slow rise in non-essential spending. It noted that rural demand is steady, urban demand is improving, and investment activity is picking up. The central bank expects the economy to grow by 6.5 per cent in FY26, with balanced risks.