Performance Audit on the E-Way Bill System under GST, Union Government (Department of Revenue — Indirect Taxes)

A performance audit of the E-Way Bill system introduced under GST on 1 April 2018 to record the movement of goods and check evasion. It tested 2,244 e-way bills belonging to 956 taxpayers, and examined the preventive and enforcement work of half the department's field units.

Audit period: 1 Apr 2018 — 31 Mar 2022
Presented: 12 Aug 2025

Findings

103 taxpayers who moved goods worth ₹2,285.23 crore on e-way bills between April 2018 and March 2022 either filed no return or left that turnover out of it, involving ₹307.37 crore of tax and ₹3.25 crore of interest.
“Audit observed that 103 taxpayers pertaining to 37 Commissionerates who had effected outward supplies for ₹ 2,285.23 crore from April 2018 to March 2022 supported by EWBs either did not file their return or did not report the turnover in their returns. The amount of tax involved in these cases worked out to ₹ 307.37 crore alongwith interest of ₹ 3.25 crore.”Executive Summary
174 taxpayers moved ₹1,750.87 crore of goods without discharging ₹168.06 crore of tax, and 71 taxpayers who reported nil turnover had in fact moved ₹340.42 crore of goods, with ₹50.41 crore recoverable.
“Audit observed that 71 taxpayers falling under 33 Commissionerates reporting Nil turnover in their returns actually effected outward supplies, as ascertained from EWBs, amounting to ₹ 340.42 crore. The amount of tax recoverable worked out to ₹ 50.41 crore alongwith interest of ₹ 3.69 crore… Audit also observed that 174 taxpayers pertaining to 53 Commissionerates had effected outward supplies of ₹ 1,750.87 crore from April 2018 to March 2022 without discharging tax liability of ₹ 168.06 crore recoverable with interest of ₹ 9.29 crore on these supplies.”Executive Summary
18 taxpayers in three commissionerates generated 3,137 e-way bills for ₹168.21 crore of supplies and paid none of the ₹81.11 crore of tax due, which the audit describes as wilful suppression of turnover.
“Wilful suppression of turnover by a group of taxpayers — Audit observed that 18 taxpayers pertaining to three Commissionerates had generated 3,137 EWBs for outward supplies of ₹ 168.21 crore. The taxpayers did not discharge the tax liability of ₹ 81.11 crore with interest of ₹ 45.19 crore due to either non-filing of returns or non/short reporting the turnover in their returns.”Executive Summary
43 taxpayers generated e-way bills for ₹152.60 crore of supplies after their registration had already been cancelled, leaving ₹23.56 crore recoverable.
“Audit observed that 43 taxpayers pertaining to 24 Commissionerates had generated EWBs for effecting outward supplies for ₹ 152.60 crore from April 2018 to March 2022 after the effective date of cancellation of their registration. Tax liability of ₹ 23.56 crore is recoverable in these cases alongwith interest of ₹ 0.94 crore.”Executive Summary
Unregistered persons generated 3,585 e-way bills each above the ₹40 lakh threshold at which registration becomes compulsory, with no system control to stop them.
“Unregistered persons generated 3,585 EWBs exceeding threshold limit of ₹ 40 lakh in each EWB prescribed for registration under the CGST Act.”Executive Summary
The National Informatics Centre generates 97 analytical reports on e-way bill transactions for the tax departments; 46 of the 58 commissionerates audited said they were not using them to plan vehicle interceptions.
“NIC is generating 97 Analytical Reports on EWB transactions, and it shares the same through the NIC-EWB Portal with the GST Departments under Centre and State formations for their use. Out of 58 selected Commissionerates, 46 Commissionerates stated that they were not using the reports for the purpose of planning of interception of vehicles.”Executive Summary
In 200 of 1,405 booked verification cases, vehicles were released without any demand being raised — ₹2.60 crore — and in 93 more the demand raised was short by ₹0.79 crore.
“Scrutiny of 1,405 booked cases pertaining to 58 Commissionerates revealed that in respect of 200 cases, vehicles were released without creating demand of ₹ 2.60 crore. Further, in respect of 93 cases, there was short demand of ₹ 0.79 crore.”Executive Summary
The audit could not complete its own verification — of 956 taxpayers whose records it called for, none were produced for 108 and only part for 334, and 153 of 1,559 booked cases were not produced by 13 commissionerates.
“In order to verify 2,244 selected EWBs, audit requisitioned records in respect of 956 selected taxpayers (with reference to corresponding 2,244 EWBs) for the period from 2018-19 to 2021-22. However, records were not produced in respect of 108 taxpayers and only partial records were produced in respect of 334 taxpayers. Similarly in respect of records relating to booked cases of EWB verifications, though records relating to 1,559 booked cases pertaining to 58 Commissionerates were called for, the documents for 153 cases were not produced by 13 Commissionerates.”Executive Summary

Fact-checks citing this report

AccurateWe shall work with the State governments to usher in the GST in an appropriate timeframe.

Findings

103 taxpayers who moved goods worth ₹2,285.23 crore on e-way bills between April 2018 and March 2022 either filed no return or left that turnover out of it, involving ₹307.37 crore of tax and ₹3.25 crore of interest.

“Audit observed that 103 taxpayers pertaining to 37 Commissionerates who had effected outward supplies for ₹ 2,285.23 crore from April 2018 to March 2022 supported by EWBs either did not file their return or did not report the turnover in their returns. The amount of tax involved in these cases worked out to ₹ 307.37 crore alongwith interest of ₹ 3.25 crore.”Executive Summary

174 taxpayers moved ₹1,750.87 crore of goods without discharging ₹168.06 crore of tax, and 71 taxpayers who reported nil turnover had in fact moved ₹340.42 crore of goods, with ₹50.41 crore recoverable.

“Audit observed that 71 taxpayers falling under 33 Commissionerates reporting Nil turnover in their returns actually effected outward supplies, as ascertained from EWBs, amounting to ₹ 340.42 crore. The amount of tax recoverable worked out to ₹ 50.41 crore alongwith interest of ₹ 3.69 crore… Audit also observed that 174 taxpayers pertaining to 53 Commissionerates had effected outward supplies of ₹ 1,750.87 crore from April 2018 to March 2022 without discharging tax liability of ₹ 168.06 crore recoverable with interest of ₹ 9.29 crore on these supplies.”Executive Summary

18 taxpayers in three commissionerates generated 3,137 e-way bills for ₹168.21 crore of supplies and paid none of the ₹81.11 crore of tax due, which the audit describes as wilful suppression of turnover.

“Wilful suppression of turnover by a group of taxpayers — Audit observed that 18 taxpayers pertaining to three Commissionerates had generated 3,137 EWBs for outward supplies of ₹ 168.21 crore. The taxpayers did not discharge the tax liability of ₹ 81.11 crore with interest of ₹ 45.19 crore due to either non-filing of returns or non/short reporting the turnover in their returns.”Executive Summary

43 taxpayers generated e-way bills for ₹152.60 crore of supplies after their registration had already been cancelled, leaving ₹23.56 crore recoverable.

“Audit observed that 43 taxpayers pertaining to 24 Commissionerates had generated EWBs for effecting outward supplies for ₹ 152.60 crore from April 2018 to March 2022 after the effective date of cancellation of their registration. Tax liability of ₹ 23.56 crore is recoverable in these cases alongwith interest of ₹ 0.94 crore.”Executive Summary

Unregistered persons generated 3,585 e-way bills each above the ₹40 lakh threshold at which registration becomes compulsory, with no system control to stop them.

“Unregistered persons generated 3,585 EWBs exceeding threshold limit of ₹ 40 lakh in each EWB prescribed for registration under the CGST Act.”Executive Summary

The National Informatics Centre generates 97 analytical reports on e-way bill transactions for the tax departments; 46 of the 58 commissionerates audited said they were not using them to plan vehicle interceptions.

“NIC is generating 97 Analytical Reports on EWB transactions, and it shares the same through the NIC-EWB Portal with the GST Departments under Centre and State formations for their use. Out of 58 selected Commissionerates, 46 Commissionerates stated that they were not using the reports for the purpose of planning of interception of vehicles.”Executive Summary

In 200 of 1,405 booked verification cases, vehicles were released without any demand being raised — ₹2.60 crore — and in 93 more the demand raised was short by ₹0.79 crore.

“Scrutiny of 1,405 booked cases pertaining to 58 Commissionerates revealed that in respect of 200 cases, vehicles were released without creating demand of ₹ 2.60 crore. Further, in respect of 93 cases, there was short demand of ₹ 0.79 crore.”Executive Summary

The audit could not complete its own verification — of 956 taxpayers whose records it called for, none were produced for 108 and only part for 334, and 153 of 1,559 booked cases were not produced by 13 commissionerates.

“In order to verify 2,244 selected EWBs, audit requisitioned records in respect of 956 selected taxpayers (with reference to corresponding 2,244 EWBs) for the period from 2018-19 to 2021-22. However, records were not produced in respect of 108 taxpayers and only partial records were produced in respect of 334 taxpayers. Similarly in respect of records relating to booked cases of EWB verifications, though records relating to 1,559 booked cases pertaining to 58 Commissionerates were called for, the documents for 153 cases were not produced by 13 Commissionerates.”Executive Summary