E-Way Bill (EWB) generation in April surged to second all-time high of 11.93 crore. This is an increase of over 23 per cent compared to April last year. The spike could have some impact on GST collections in May, data for which will be out on June 1.
Normally, March, being the last month of the fiscal year, records high EWB generation and this year was no exception. This is basically to clear stock at the end of the fiscal year. However, the trend slows down in April, the first month of next the fiscal. Though generation did come down in April 2025 compared to March 2025, the pace was better than the previous years.
An e-way bill is an electronic document generated on a portal, evidencing the movement of goods. It also indicates whether tax has been paid for the moving goods. As per Rule 138 of the CGST Rules, 2017, every registered person involved in the movement of goods (which may not necessarily be on account of supply) of consignment value of more than ₹50,000 (can be lower for intra-state movement) is required to generate an e-way bill.
Experts attribute strong growth in generation to a pick up in economic activities besides other issues. An tax expert said the strong rise could be a consequence of multiple factors — enhanced demand for seasonal consumption items in FMCG, electronics etc (presumably indicating an improved economic scenario). “Improved enforcement against GST frauds leading to enhanced overall compliance levels would have played a role too,” he said.
Two major changes
Two major changes in EWB have taken place from April 1. First, the GST Network mandated Multi-Factor Authentication (MFA) for all taxpayers and users accessing the e-way bill and e-invoice portals would have pushed the e-way bill numbers. Second, the fact that e-way bill system has been integrated with the Indian Railways’ Parcel system from January is also credited for strong growth in EWB generation.
Another tax expert said typically, April sees a slowdown after the rush of activity in March due to year-end stock clearances. But this year, the strong numbers suggest that businesses are not just continuing operations at full pace but are also optimistic about demand in the coming months. “It shows that companies are managing their supply chains better, restocking early, and planning ahead. This trend also reflects improved GST compliance, as more businesses are consistently generating e-way bills — indicating a maturing tax system and smoother digital adoption,” he said.
According to another tax expert, India’s economic resilience continues to be displayed in spite of global uncertainties. The HSBC India Manufacturing Purchasing Mangers’ Index (PMI), compiled by S&P Global, rose to a 10-month high of 58.2 in April from 58.1 in March. The growth in the manufacturing sector appears to be fuelled by a surge in export orders and robust output growth. “The positive impact of RBI’s monetary policy and reduced interest rates may have also contributed to the uptick in economic growth and corresponding support on EWB volumes in April 2025,” he said.Top of Form
