E-Way Bill (EWB) generation in May surged to 12.26 crore, marking the second-highest figure ever reported by GSTN. This represents a substantial 19 per cent increase compared to May of last year and nearly matches the all-time high of 12.45 crore recorded in March, 2025. Experts attribute this robust growth to escalating economic activity and enhanced tax compliance.
This spike in EWB generation is anticipated to have a positive impact on GST collections for June, with data expected on July 1. Analysis of recent months shows a peak in March, a slight slowdown in April, and a renewed acceleration in May. An e-way bill is a mandatory electronic document that records the movement of goods and confirms tax payment. As per Rule 138 of the CGST Rules, 2017, it is required for any movement of goods with a consignment value exceeding ₹50,000 (though lower thresholds may apply for intra-state movements), even if not directly linked to a supply.
Expert insights
An tax expert explained that the high EWB generation in May 2025 signifies heightened business activity. This, she suggested, is driven by factors such as pre-GST filing movements, inventory stocking in anticipation of monsoon and festive demand, and improved supply chain efficiency. Shrivastava also points to rising compliance and formalisation, particularly within tier-2 and -3 markets, as key contributors. “This momentum is supported by maturing digital infrastructure and a shift toward buffer inventory strategies,” she added.
Another tax expert said the surge in EWB is a clear indicator of increased manufacturing and commercial activities. “As businesses ramp up production and distribution, the movement of goods intensifies, necessitating the generation of more e-way bills,” he stated. Mehrotra further emphasised that the rise in EWB generations also reflects improved adherence to GST regulations, with businesses more rigorously documenting all transported goods.
Correlation with GST Collections
While not directly proportional, there is a strong correlation between EWB generation and subsequent GST collections. In April, EWB generation was 11.92 crore (then the second-highest), preceding May’s GST collection of ₹2.01 lakh crore (also the second-highest ever). Similarly, March’s record EWB generation of 12.45 crore was followed by April’s all-time high GST collection of ₹2.37 lakh crore.
She clarified that such movement typically precedes higher GST collections, indicating strong enterprise confidence and an improving consumption outlook. She concluded that sustained trends like this strengthen the tax base, support fiscal planning, and signal a resilient, broad-based recovery in economic activity. “In our view,” she stated, “this is a positive sign of deepening formalization, smarter inventory planning, and an ecosystem preparing itself for sustained, rather than sporadic, growth.”
He concurred, asserting that the impact of this EWB surge on GST collections is expected to be substantial. “As manufacturing and commercial activities grow, so do the taxable transactions, leading to higher GST revenues. Additionally, better compliance ensures that the tax base is broadened, further enhancing collections,” he elaborated.
