New Delhi, Sep 10 (IANS) India saw electronic permits (e-way bills) reach 129.13 million in August, marking the second-highest monthly figure, ahead of the GST 2.0 rollout from September 22.

E-way bills are electronic permits required for transporting goods worth over Rs 50,000 within or across states. A hike in E-way bills indicates higher movement of goods.

In July, the tally was all-time high of 131.91 million, according to Goods and Services Tax Network (GSTN) data.

The e-way bill generation went up 22.5 per cent (year-on-year), as per the data.

According to industry experts, the sustained momentum in e-way bills signals a resilient flow of goods across the country, as domestic demand rises ahead of the festive season.

E-way bill generation has maintained an upward trajectory for several months. The electronic permits are mandatory for tracking the movement of goods across the country.

According to experts, the robust recovery in e-way bill generation suggests stabilisation of goods movement, which underscores several positive developments, including increased manufacturing output, improved infrastructure and logistics efficiencies.

This also shows greater formalisation in the economy as compliance levels rise under the GST regime.

The rollout of GST 2.0 would add fresh fuel to consumption as mass consumption would follow the formalisation trend, while premium consumers would aspire for differentiated offerings.

According to Emkay Global Financial Services, improving macro tailwinds continue to support the sector’s elevated valuations, even as growth support is still awaited.

“The anticipatory rally ahead of the GST 2.0 announcement was rewarding. As we factor in benefits and lift target prices of select stocks, our stock calls remain firm,” the report added.

The Centre has rationalised the indirect tax structure, cutting the current four slabs down to two — scrapping the 12 per cent and 28 per cent rates, while retaining the 5 per cent and 18 per cent slabs.

–IANS

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