The generation of electronic bills is reduced in November after the holiday season

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The rhythm of generation of electronic bills slowed in the first half of November compared to the previous month, signaling a possible slowdown in demand and probably indicating the fragility of a strong recovery recorded in the festive season.

In the first half of the year, approximately 24.1 million electronic bills were generated, with a daily average of 1.72 million. The whole month is likely to see around 52 million e-bills, and experts said the situation needs to be monitored closely as electronic invoice generation is a forthcoming indicator of Tax on goods and services (GST) collection.

“The data so far suggests that full month numbers may not be as high as October’s. We will need to be cautious and vigilant to ascertain whether this drop in e-transport bills is indicative of a decline in pent-up demand after the holiday season, or more holidays in early November, “Aditi Nayar, chief economist at rating agency

he told ET.

An electronic invoice is required for the transport of goods worth more than Rs 50,000. It is considered one of the key metrics for estimating business activity and economic growth.

In October, 73.5 million electronic bills were generated, the highest number ever, marking a growth of 14.5% year-on-year and 39% from the pre-pandemic level in October 2019.

In terms of value, the e-invoices generated reached Rs 21.2 lakh crore in October 2021, up 9.4% compared to the previous month. It was 26.3% higher than the October 2020 level and 49% higher than the October 2019 level.

The data indicated a resurgence economic activity amplified by the holiday season.

In tandem with the e-invoice figures from previous months, the October GST collections rose to the second highest level of Rs 1.30 lakh crore, from Rs 1.17 lakh crore in September.

However, according to data from the Goods and Services Tax Network (GSTN), a slump appears to be forming based on the initial generation of the November e-invoice.

The growth trend of electronic bills has continued since July, when 64.1 million bills were generated, with a daily average of 2.06 million, followed by the generation of 65.8 million bills in August, with a daily average of 2.12 million.

While the daily average for September was over 2.26 million, the total number of bills generated stood at 67.9 million.

GST collections for September exceeded the Rs 1.12 lakh crore recorded in August and Rs 1.16 lakh crore in July.

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