Lucknow — Tax officials in Uttar Pradesh say businesses have devised a novel method of evading levies by generating electronic way bills (e-way bills) shortly after midnight.
An inquiry by the state tax department found that between 12:15 am and 12:25 am, a large number of bills were being created within a short time frame. Officials say these bills were then reused multiple times to legitimise the movement of goods, allowing firms to avoid paying tax on actual consignments.
Audit findings
State Tax Secretary M Devaraj said data analysis had revealed a consistent pattern. “Bills generated during this 10-minute window showed inflated figures of goods in transit. The same documents were used repeatedly to cover multiple truck movements,” he told reporters.
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Under existing rules, a bill for 100 km is valid for one day, and the validity increases with distance. Investigators, however, found that traders exploited this provision, recycling old bills over several days.
Expert opinion
Tax policy expert Professor Arvind Mishra said the method represented “a sophisticated misuse of technology loopholes.” He added that integrating e-way bills with GPS-based vehicle tracking could curb manipulation. “Until then, stronger data analytics and AI monitoring remain the best defence,” he noted.
Next steps
The department has said it will now scrutinise not just bill generators but also firms that cancel bills, as these often conceal suspicious activity. Commissioners have been directed to review company registrations and identify firms repeatedly changing names or ownership.
Officials believe the new strategy will tighten oversight, though they admit traders continue to adapt quickly to enforcement measures.
