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Tune in on 17th July for the Small Business Virtual Summit with Cisco. Register now!
Last Updated : Jun 08, 2020 01:48 PM IST | Source: Moneycontrol.com

Business Insight | Rise in GST e-way bills show early signs of economy restarting

Moneycontrol's Gaurav Choudhury shares his insight on what this means for the economy

India is reopening after over 70 days of lockdown. Shops, malls, restaurants and hotels have started operations. There are signs that the economy has restarted, although a revival may still be many months away. For instance, the number of trucks moving freight is up at 2-2.5 million in May, nearly double of April, when the country was in a complete lockdown.

Generation of e-way bills for the month of May touched 11.4 lakh per day in the last week of the month. The daily average for the whole month to 8.2 lakh, almost thrice of the figure generated in April.

E-way bills track the cargo movement under the Goods and Services Tax. They give an approximation of inventory movements that might indicate wholesalers stocking up on inventory in anticipation of demand. As a fallout of the lockdown, a lot of stock could not be delivered to retail markets. The upcoming weeks, post-lockdown, could see unloading off of perishable stock in books and clearance of old inventory.

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Are these really green shoots? Moneycontrol's Gaurav Choudhury shares his insight.
First Published on Jun 8, 2020 01:34 pm
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